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March 1, 2002

CSFB's Global Sales Trader Is Fined

By Gregory Bresiger

A Credit Suisse First Boston (CSFB) trading official was among those internally disciplined in the wake of the record fine levied against the firm by NASD Regulation.

Fines were imposed on George Coleman, head of CSFB global sales trading, as well as several other officials.

All three officials were fined $500,000 each for their role in an alleged illegal IPO allocation, which cost the firm $100 million in fines, according to regulators.

The regulators charged that CSFB took the commissions in exchange for providing clients with allocations of much wanted IPOs. Regulators said this amounted to a kind of profit-sharing arrangement.

Coleman, along with other officials of the firm, was also suspended. CSFB neither admitted nor denied the charges. They included allegations that the commission/ IPO practice was widespread. Clients generally paid CS First Boston six cents a share for executing an agency trade.

In the case of the illegal IPO purchases, commissions ranged from $1 to $3.15 per share, regulators said.

Officials said they uncovered the scheme in the summer of 2000.