Former employees banned from securities industry
Two well-known employees from the Internet era have been fined for millions of dollars and given lifetime bans from the securities industry. Former Salomon Smith Barney telecommunications analyst Jack Grubman and former Merrill Lynch internet guru Henry Blodget will pay $19 million in fines and penalties will be permanently banned from the securities industry to settle the fraud charges.
Both Grubman and Blodget have not admitted any wrongdoing. Grubman has been given a lifetime ban from working for an investment firm or acting as an investment adviser, dealer, or broker. Blodget will pay $4 million. The defendants will not be able to treat the penalties as tax deductible or seek to recover from insurance carrier or other third party.
Frank Quattrone a former Credit Swiss First Boston prominent banker had criminal charges brought against him by the feds. Quattrone was the first banker to face any criminal charges since the securities fraud investigation was started in 2000. The criminal securities fraud charges involve conflicts of interest. For more information on securities fraud class actions, please contact our stock fraud attorneys .