Ex-Trader Pleads Innocent in Alleged Scheme With Boesky
NEW YORK (AP) _ John A. Mulheren Jr., the former Wall Street trader accused of plotting to kill Ivan F. Boesky, pleaded innocent today to charges that he and Boesky engaged in illegal securities fraud schemes.
The 42-count indictment, returned last week, charged Mulheren with manipulating the price of Gulf & Western Inc. common stock to assist Boesky, whose 1986 guilty plea led to a series of Wall Street criminal investigations.
Mulheren also was accused of plotting a series of sham stock transactions to help Boesky companies evade taxes and circumvent securities laws in what prosecutors called ″a classic case″ of so-called stock parking.
Mulheren, 39, of Rumson, N.J., pleaded innocent before U.S. Magistrate Michael H. Dollinger in Manhattan federal court. A bail hearing was set for later today before a district judge.
Mulheren was charged with conspiracy, securities fraud, mail fraud and keeping fraudulent records. He faces a maximum five years in prison and $250,000 fine on each count.
Last month, Mulheren pleaded innocent in New Jersey to state weapons possession charges in connection with an alleged plot on Boesky’s life. Mulheren was arrested in February 1988 near his home with a loaded semiautomatic rifle local authorities alleged he planned to use against Boesky.
He remains free on $20 million bond for a previous federal charge of threatening a witness stemming from the New Jersey case. Federal officials have never identified the alleged target, but New Jersey police have said it was Boesky.
Mulheren was a general partner and chief trader at Jamie Securities, a now- defunct Manhattan investment and arbitrage firm.
Also arraigned today was a co-defendant, Leonard DeStefano, 32, a former trader at Jamie. He was named on three counts of conspiracy, mail fraud and fraudulent record keeping.
DeStefano pleaded innocent and was released on a $125,000 personal recognizance bond to be secured by his home.
Boesky is serving a three-year jail term at a minimum security prison in California. He paid $100 million to settle insider trading and other charges with the government in late 1986.