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...severity of the sentence stunned members of Milken's camp, one of whom had allowed before the sentencing that he "would consider three years to be too harsh." In its strategy the defense sought to portray Milken as a concerned citizen who taught math to inner-city children and donated large sums of money to charity, while striving to overcome his image as the personification of Wall Street greed. "Our goal was to make Michael a human being rather than a symbol," said a Milken source...

Author: /time Magazine | Title: A Stiff Term for the Wizard | 12/3/1990 | See Source »

...chief defense lawyer Arthur Liman may have blundered in his insistence that Milken's crimes were merely technical ones, even after the financier pleaded guilty last April to six of 98 counts of securities violations and agreed to pay a record $600 million in fines and restitution. The defense tactic helped precipitate an unusual two-week presentencing hearing that showed Milken's operations at the now defunct Wall Street firm Drexel Burnham Lambert to have been riddled with unlawful activities. Significantly, the new testimony did nothing to refute the government's claim that Milken had encouraged Drexel employees under...

Author: /time Magazine | Title: A Stiff Term for the Wizard | 12/3/1990 | See Source »

...much time will Milken, 44, ultimately spend on ice? Wood said she will consider reducing the sentence if Milken cooperates with other government probes of Wall Street before he enters prison next March. Once he begins his term, Milken can be eligible for parole at any time. But experts said he would probably serve at least three years of the 10-year sentence because of the importance of the case as a deterrent to white-collar crime. Once Milken leaves the slammer, he will have to perform 5,400 hours of community service over three years...

Author: /time Magazine | Title: A Stiff Term for the Wizard | 12/3/1990 | See Source »

Wood drove home that point in rendering her decision. While she acknowledged that sentencing Milken to community service would permit him "to work productively with others," she asserted that "a prison term is required for the purposes of general deterrence." Moreover, she added, Milken had committed "serious crimes warranting serious punishment and the discomfort and opprobrium of being removed from society...

Author: /time Magazine | Title: A Stiff Term for the Wizard | 12/3/1990 | See Source »

...Milken has the right to appeal on grounds that the presentencing hearing violated his rights by introducing charges that had already been dropped. But legal experts saw little hope for that strategy. "There is no right to appeal on the length of a sentence," says Columbia law professor John Coffee Jr. "They may try to challenge the constitutionality of the hearing, but I'm certain they will be unsuccessful...

Author: /time Magazine | Title: A Stiff Term for the Wizard | 12/3/1990 | See Source »

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