Jack Grubman Finds Work in New Jersey

In that role, Grubman helped dole out lucrative IPO shares to telecom executives like former WorldCom chief Bernie Ebbers and former Qwest CEO Joe Nacchio in the hopes of landing more investment banking business for Citigroup. The Securities and Exchange Commission has since pushed for a series of reforms aimed at separating the roles of research and investment banking.

Grubman's rainmaker status made him one of the highest-paid analysts on the Street. In one year, he took in $20 million from Citigroup. He left the bank in August 2002 with a $30 million severance package after becoming the poster boy for Wall Street conflicts of interest.

In April, as part of the $1.4 billion global settlement with state and federal regulators, Grubman was fined $15 million and banned from the securities business for life.

Grubman's tarnished reputation isn't an insurmountable challenge for the folks at Distinctive Devices.

"I think on balance it's neutralized by the business we hope he can develop for us," says Distinctive Devices director Anderson.

In a TV interview Friday on CNBC, Distinctive Devices CEO Sanjay Mody denied the Grubman hire was a publicity stunt. He also said Grubman's pay would be based on performance.

Observers point out that many of his most influential contacts have been fired and are facing prosecutors, so it's not clear whether Grubman can expect the same level of financial reward in his second career.