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When the Justice Department fined E.F. Hutton $2 million in May for engaging in a complex check-kiting scheme, many critics complained that Attorney General Edwin Meese had not applied to executive-suite crime the standard that the Reagan Administration invokes for less well-heeled violators. Even though Hutton pleaded guilty to 2,000 separate charges of mail and wire fraud, the Government did not charge any individuals with wrongdoing. Former Attorney General Griffin Bell, who was hired by Hutton to conduct an independent, internal investigation of the case, is expected to set the record straight when he releases...

Author: /time Magazine | Title: A Verdict | 9/9/1985 | See Source »

According to articles published in several papers, Bell has found that top Hutton officials bear indirect responsibility for failing to install the types of controls that could have prevented or uncovered the scheme. Bell reportedly also found that Thomas Morley, a senior vice president in charge of cash- management activities, failed in his duty by not detecting the overdrafting...

Author: /time Magazine | Title: A Verdict | 9/9/1985 | See Source »

...just another dish on the international smorgasbord. Young, titled transients from Europe and South America are drawn to the action in New York City, where they are politely known to real estate agents and party hostesses as multinationals. Dimitri Karageorge, 27, Prince of Yugoslavia, an E.F. Hutton stockbroker by day, has mastered American directness and uses a different word: "Eurotrash. People say we are a little idle, a little too rich. I suppose it's true." After work or shopping, the teenage countesses and bejeaned barons gather at Club A, a jewel-box disco, to dance, gossip and compare invitations...

Author: /time Magazine | Title: Living: Now America Is the Thing to Do | 7/8/1985 | See Source »

When E.F. Hutton pleaded guilty last month to 2,000 counts of wire and mail fraud involving kited checks, its top officers denied any knowledge of the wrongdoing. A House Judiciary subcommittee last week produced documents that raised questions about Hutton's claim. Among them was a Hutton memo, apparently addressed to Hutton President George L. Ball, describing "disproportionately high interest . . . from aggressive overdrafting with several branches in the Washington, D.C., area...

Author: /time Magazine | Title: Investigations: Who Knew What? | 7/1/1985 | See Source »

Ball, now head of Prudential-Bache Securities, said he received no such memo, only a routine briefing paper in November 1981 that made no reference to any overdraft scheme. Ball and Hutton executives did say that another document mentioning the overdrafting was written in March 1982. By then, Hutton said, the practices had been uncovered and halted. Ball and Hutton claimed that the March memo later got stapled to the November one. The committee, said Ball, / was led to believe that the documents "constituted a single memo addressed to me." Committee members were skeptical. Ohio Democrat Edward Feighan said...

Author: /time Magazine | Title: Investigations: Who Knew What? | 7/1/1985 | See Source »

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