Word: drexel
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Dates: during 1980-1989
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...nerves were calmed last week by the spectacle of another once powerful Wall Streeter getting a prison sentence. Dennis Levine, a former managing director at the Drexel Burnham Lambert investment firm who broke open the scandal last year by implicating Boesky, drew a term of two years, making him the fourth insider trader this year who will do hard time. Levine had faced as much as 20 years on four counts of securities fraud, perjury and income-tax evasion. "I beg you, let me put the pieces of my life together again," he implored U.S. District Judge Gerard Goettel before...
Siegel's guilty plea helped refocus attention on the investment bank that has perhaps suffered most from the aftershocks of insider trading: Drexel Burnham. That firm was quick to issue a statement saying Siegel's offenses took place before he joined the company...
Nonetheless Drexel Burnham, which earned a record $800 million in profits last year, most of it connected with its ability to sell takeover-related junk bonds, is now limping badly. The firm claims that it is raising more new money than ever before, but it appears that precious few new takeovers financed by the company have been announced in the past two months, while a number of previous deals have collapsed. Sources close to the company say Drexel Burnham has had to buy up all or part of several recent junk-bond offerings on its own account after they could...
...connection with the Boesky case, at least six Drexel Burnham employees, including Siegel and Junk Bond Guru Michael Milken, have been subpoenaed by the SEC, an action that does not imply guilt of any kind. Even so, Milken has reportedly hired three of the country's top criminal lawyers, Edward Bennet Williams, Arthur Liman and Martin Flumenbaum, to represent him before the SEC and in a parallel federal grand jury investigation. In December, Drexel Burnham Chief Executive Frederick Joseph publicly admitted that for a time, when Milken lined up potential buyers for takeover junk bonds, the investment bank would supply...
...Drexel Burnham was not helped by the revelation that it received an undocumented $5.3 million fee from Boesky last March, which Milken's brother Lowell later averred was for "advisory services." A similar $3 million fee for "investment advisory services" went from Boesky to the Los Angeles brokerage firm Jefferies & Co., headed by Boyd Jefferies, 56. That company specialized in quietly assembling large blocks of shares for corporate raiders outside the purview of the New York Stock Exchange. In that role, Jefferies & Co. almost always had advance knowledge of any important takeover deal. Lawyers familiar with...