Quattrone Reportedly Cuts Deal

Former tech investment banker Frank Quattrone has agreed to a plea deal with federal prosecutors that will allow him to avoid a third trial on obstruction of justice charges, according to a weekend media report.

The deferred-prosecution agreement also will allow Quattrone to avoid penalties as long as he doesn't break the law in the next few years, according to the report in The New York Times, which cited people familiar with the negotiations. Quattrone also will be able to return to working in finance, the report said.

The former Silicon Valley dealmaker is scheduled to appear in federal court on Tuesday before U.S. District Judge George Daniels. Prosecutors are expected to present the agreement for Daniels' approval then, according to the report.

The deal would bring an end to a long-running legal battle for Quattrone, who became a symbol for the greed and excess of the late '90s technology boom. His first trial on obstruction of justice charges ended in a mistrial. He later was convicted in a second trial and received an 18-month sentence in September 2004, although he remained free pending an appeal. In March, a federal appellate court overturned the conviction.

The case against Quattrone stemmed from a single email in which he recommended that his staff at Credit Suisse(CSR Quote - Cramer on CSR - Stock Picks) clean out their files and destroy documents. Quattrone and his lawyers portrayed the email as a routine Wall Street housekeeping move.

But prosecutors said Quattrone had a more sinister motive, alleging he gave the order to his staff because he had just become aware of a federal investigation into Credit Suisse's IPO practices.