Important Dates in Investigation of Wall Street Practices With AM-Jefferies-Boesky Bjt
Undated (AP) _ Here is a chronology of major developments in prosecution of insider trading cases on Wall Street:
May 12, 1986 - The Securities and Exchange Commission charges Dennis Levine of Drexel Burnham Lambert Inc. with making $12.6 million in profits from illegal trading on inside information since 1980.
May 13 - Levine is arrested and charged with obstructing justice on suspicion that he attempted to destroy records. He is released on a $5 million bond.
June 5 - Levine pleads guilty to four felony charges and agrees to cooperate with the government’s investigation. In settlement of civil charges, he agrees to pay $11.6 million.
July 1 - The SEC charges Ira Sokolow and Robert Wilkis, former investment bankers at Shearson Lehman Brothers Inc. and Lazard Freres & Co., with exchanging confidential information with Levine. They settle with the SEC. It is alleged Wilkis made about $3 million from insider trading. Sokolow agreed to give up $120,000 in profits.
July 3 - David Brown, an investment banker at Goldman, Sachs & Co., resigns during SEC investigation.
July 14 - Ilan Reich, a takeover lawyer at Wachtell, Lipton, Rosen & Katz, resigns during government investigation.
Aug. 19 - Litton Industries Inc. sues Shearson Lehman and Levine, charging Levine’s insider trading made Litton pay more than necessary to take over Itek Corp. The suit seeks $30 million in damages.
Sept. 4 - Sokolow and Brown plead guilty to criminal charges of passing stolen information to Levine.
Oct. 3 - Reich is indicted by a federal grand jury in the Levine case.
Oct. 9 - Reich pleads guilty to two criminal counts for his role in the Levine case.
Nov. 6 - Sokolow is sentenced to a year and a day in prison for his role in the Levine case.
Nov. 14 - Stock speculator Ivan Boesky agrees to pay a $100 million penalty to settle charges of trading on insider information supplied by Levine in 1985 and 1986. He also agrees to cooperate with investigators and to plead guilty to a single unspecified criminal charge.
Nov. 21 - In the first lawsuit against Boesky by a shareholder, Angelo Oriolo of Pennsville, N.J., files a suit claiming he was hurt financially in 1985 when he sold shares in General Foods Corp., a stock that was the subject of takeover speculation by Boesky.
Dec. 18 - FMC Corp. of Chicago announces a lawsuit seeking more than $260 million from Boesky and others. FMC claims that insider trading inflated the cost of its $2 billion recapitalization.
Dec. 22 - Wilkis pleads guilty to four felony charges and Randall Cecola, a former junior financial analyst at Lazard Freres, pleads guilty to two criminal counts of filing false tax returns.
Jan. 12, 1987 - Brown is sentenced to 30 days in prison on weekends and fined $10,000.
Jan. 23 - Reich is sentenced to a year and a day in prison and five years of probation.
Jan. 28 - Michael Davidoff, the former head trader for Boesky, pleads guilty to one count of securities fraud and agrees to cooperate in the government’s continuing investigation.
Feb. 9 - Wilkis is sentenced to a year and a day in prison in connection with the insider trading charges and five years of probation.
Feb. 10 - Cecola is sentenced to six years’ probation.
Feb. 11-12 - Insider trading charges are filed against Richard Wigton, a vice president at Kidder, Peabody & Co.; Timothy L. Tabor, a former vice president at Kidder and Merrill Lynch & Co.; and Robert Freeman, a partner at Goldman Sachs. They are charged with swapping inside information, which was used to make illegal profits for Kidder Peabody. Freeman is also charged with trading for his own account. Prosecutors decline to say whether the case is linked to the Boesky investigation.
Feb. 13 - Martin A. Siegel resigns as a managing director of Drexel Burnham Lambert Inc. and pleads guilty to illegal stock trading and tax evasion. He faces up to 10 years in prison and a $260,000 fine. In addition, he agrees to give up $9 million in cash and securities to settle civil charges related to a complaint that he engaged in insider trading with Boesky.
Feb. 20 - Levine is sentenced to two years in prison and fined $362,000 on charges of securities fraud, tax evasion and perjury.
March 11 - Nahum Vaskevitch, head of the London-based international mergers business for Merrill Lynch & Co., is accused by the SEC of leaking details of a dozen mergers to investor David Sofer. The SEC say the men made $4 million in illegal profits over two years.
March 12 - Merrill Lynch says it dismissed Vaskevitch for failing to provide a ″satisfactory explanation″ of the SEC’s allegations.
March 19 - Boyd L. Jefferies, founder of the Los Angeles securities firm Jefferies & Co., agrees to plead guilty to two criminal charges involving securities law violations. He is not accused of insider trading. But he says one of the charges involves a transaction in which his firm agreed to buy stocks from Boesky’s companies with the understanding that Boesky would buy them back later, enabling the arbitrager to falsify the extent of his stock holdings in the meantime. Jefferies resigns as chairman of Jefferies & Co. and agrees to stay out of the securities business for at least five years.