I beg to differ, I don't believe the last 7 years Peter Tosto spent in jail was "a slap on the wrist" or "very minor time".
On May 18, 1986 Ivan Boesky gave the commencement address at Milkin's alma mater, the University of California at Berkeley's business school. "I think greed is healthy," he told his enthusiastic audience. "You can be greedy and still feel good about yourself." Sentenced to prison, barred from dealing in securities, and ordered to pay $100 million in penalties, Boesky cooperated with the SEC in an insider-trading probe that rocked Wall Street. A few months later Boesky was indicted on the charges that would land him in Southern California's Lompoc Federal Prison, also known as Club Fed West. Boesky served 22 months in Lompoc, California.
September 1988 the SEC filed a 184-page complaint against Drexel. Manhattan's U.S. District Attorney Rudy Guliani hit Drexel and Milkin with racketeering charges under the 1970 RICO (Racketeer Influenced and Corrupt Organizations) statute. On December 21, Drexel pled guilty to six felony counts of mail, wire and securities fraud, paid a $650 million settlement fee, and fired Michael Milkin. The cases against Drexel and its young junk bond king revolved around charges that secret arrangements were made with Boesky and others to defraud Drexel's clients. Two months later, in Wall Street's biggest criminal prosecution ever, 98 indictments of fraud and racketeering were brought against Milkin. Michael Milkin served 24 months in Pleasanton, California. |
