June 24, 2003
“Frank Gruttadauria admitted in open court that he alone was responsible for his criminal conduct. He was convicted of committing multiple frauds that took place over fifteen years at five different firms, victimizing both his customers and his employers, including SG Cowen.
“We have not been contacted by the Cuyahoga County Prosecutor’s Office
concerning any investigation of this matter, and we have no reason to
believe we are the subject of any criminal investigation. In fact, the US Attorney’s Office that prosecuted Gruttadauria explicitly identified SG Cowen as one of Gruttadauria’s victims. Moreover, we have cooperated with all investigations by governmental authorities and will continue to do so.
“SG Cowen has taken responsibility for compensating Gruttadauria’s former customers and has paid more than $125 million to those harmed by his unlawful conduct.”