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Probe of CSFB widens
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May 17, 2001: 6:49 p.m. ET
NASD documents reveal two more employees part of IPO investigation
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NEW YORK (CNNfn) - Two more employees from Credit Suisse First Boston are now under investigation by the regulatory arm of the National Association of Securities Dealers.
Ladd William McQuade, a director in CSFB's Boston office, is now being investigated by the NASD, according to documents obtained by CNNfn.com.
Dominick James Commesso, a sales trader in New York, is also under scrutiny, the documents reveal. Both employees were notified in March that the investigation "could result in disciplinary actions" and both deny any wrongdoing.
A CSFB spokeswoman declined to comment.
CSFB is currently the subject of an a federal investigation that alleges the bank requires big investors to pony up large commissions in exchange for access to initial public offerings (IPOs).
Earlier this week, the banking unit of Credit Suisse Group reportedly told two senior employees that they violated firm policy in allocating initial public offerings. CSFB now asserts that John Schmidt and Michael Grunwald violated firm principles and practices in doling out IPO shares to clients, press reports said.
The two employees were part of the empire headed by technology banking superstar Frank Quattrone. Both employees allegedly handed out shares of hot new issues as part of their jobs in the firm's technology banking group.
Earlier this month, CNNfn reported that three other CSFB employees are being investigated by NASD regulation as part of the IPO probe. Documents obtained by CNNfn revealed that Andrew Benjamin, formerly head of CSFB's private client services unit, is the subject of a NASD investigation. Thomas Fusco, a salesman who dealt with institutional investors, and George Coleman, a senior global stock trading executive, also are being investigated. All three executives deny wrongdoing, the NASD documents said. 
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