Milken Barred From Securities Industry
WASHINGTON - Junk-bond financier Michael Milken, serving a 10-year prison sentence for his part in Wall Street's biggest scandal, has been permanently barred from the securities industry, officials announced yesterday.
The Securities and Exchange Commission said Milken, imprisoned at a federal prison work camp in California, settled an administrative action brought by the SEC.
Under the agreement, Milken will be barred ``from association with any broker, dealer, investment adviser, investment company or municipal securities dealer.''
The order constitutes a lifetime banishment from participating in the securities industry as anything other than a customer, said SEC officials.
The industry ban was part of Milken's settlement last April of civil and criminal charges brought by the SEC and Justice Department, said William McLucas, chief of the SEC's Enforcement Division.
Milken, who became enormously wealthy as head of Drexel's Beverly Hills, Calif., high-yield bond department, already has agreed to pay $200 million in fines and place $400 million in a fund to compensate investors.
In a separate order, Milken's brother, lawyer Lowell Milken, also consented to a settlement barring him from similar association with securities professionals.
Criminal charges were dropped against Lowell Milken as part of his brother's plea bargain.
Milken, 44, who began his sentence earlier this month, pleaded
guilty to six felony counts in 1990: conspiracy, securities and mail fraud, violating federal securities reporting requirements, filing false information with regulators and aiding the filing of a false tax return.
None of the charges against Milken involved insider trading or junk bonds, which were used to finance hundreds of companies but also the takeovers that helped shape the business scene in the 1980s.
Milken originally was charged in March 1989 with 98 counts of fraud and racketeering.
Milken's crimes involved illegal relationships with convicted stock speculator Ivan Boesky, who turned Milken in after he was caught, and former fund manager David Solomon, both longtime Drexel clients.
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