The conviction of former Credit Suisse First Boston star investment banker Frank Quattrone was reversed Monday by the 2nd U.S. Circuit Court of Appeals.
Citing flawed jury instructions, the 2nd Circuit vacated guilty verdicts against Quattrone for obstruction of justice, obstructing an agency proceeding and witness tampering.
The 2nd Circuit also took the rare step of taking the case away from Southern District Judge Richard Owen -- which made Monday's 61-page ruling a sweeping victory for Quattrone and his legal team. Lawyers for Quattrone argued that several remarks and rulings by Judge Owen gave the appearance that the judge was biased against their client. The 2nd Circuit said it could find no evidence of such bias, but it nonetheless found that the "interest and appearance of justice are better served by reassignment."
The appeal in U.S. v. Quattrone, 04-5007-cr, was decided by 2nd Circuit Judges Richard Wesley and Peter Hall, and Northern District Chief Judge Frederick Scullin, sitting by designation. Judge Wesley wrote for the court.
U.S. Attorney Michael Garcia now must decide whether to retry Quattrone. If Garcia decides to go ahead, it would be the third trial for the former head of Credit Suisse's Global Technology Group, which was accused of obstructing two investigations into the allocation of shares in red-hot initial public offerings during the height of the high-tech boom.
While Quattrone's first trial ended with a deadlocked jury, he was convicted on the government's second attempt in 2004.
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