Michael Milken pleaded guilty to six felony counts related to securities and tax law violations in April 1990. The specific crimes he was convicted of are:
- Conspiracy: Engaging in a scheme with others to defraud clients and manipulate securities markets.
- Securities Fraud: Violating securities laws by manipulating stock prices and engaging in fraudulent transactions, including assisting Ivan Boesky in concealing stock purchases.
- Mail Fraud: Using the mail system to further fraudulent schemes.
- Filing False Reports with the SEC: Submitting inaccurate reports to the U.S. Securities and Exchange Commission.
- Assisting in the Filing of a False Tax Return: Aiding in the preparation of fraudulent tax documents to evade taxes.
- Assisting a Brokerage Firm in Violating Its Net Capital Requirements: Helping a firm bypass regulations regarding the minimum capital it was required to maintain.
These convictions stemmed from a plea bargain, which allowed Milken to avoid more serious charges like racketeering and insider trading from the original 98-count indictment. He was sentenced to 10 years in prison (later reduced to 22 months served), fined $200 million, ordered to pay $400 million into a restitution fund, and permanently barred from the securities industry
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