NEWARK, N.J. — The former president of the collapsed securities brokerage Bevill, Bresler & Schulman was convicted Monday of tax fraud, but a federal jury reached no verdict on securities fraud charges against him.
Gilbert C. Schulman, 39, was found guilty of conspiring to file false tax returns, reporting false deductions for $537,000 in phony trades and failing to report more than $180,000 in income.
The jury was unable to decide, after 3 1/2 days of deliberations, whether Schulman was involved in a securities fraud that led to the Livingston, N.J., firm's April, 1985, collapse, which authorities said cost investors more than $100 million.
The jury also found that Schulman made false deductions for $537,000 worth of Treasury bond deals involving his Bevill, Bresler personal trading account.
Assistant U.S. Atty. Samuel P. Moulthrop said he had "every reason to believe" that Schulman would be retried on the securities charges, adding that such a decision would be made by his office within the next few days.
"I'm delighted with the main portion of the case," Schulman said, referring to the securities fraud allegations. He faces 11 years in prison for the tax convictions.
Schulman's attorney, Barry Evenchick, said he was "gratified" by the verdict. His client could have faced more than 120 years in prison if convicted on all counts.
Four other principals accused in the firm's collapse pleaded guilty last November and testified during Schulman's trial that he knew of and took part in fraudulent transactions.
Schulman denied their accusations on the witness stand, saying the other executives excluded him from meetings and kept him in the dark about any fraudulent activities.
The prosecution contended Schulman was part of a "board room conspiracy" and there was little chance that the president of the company knew nothing about what was going on.
U.S. District Court Judge Dickinson R. Debevoise set sentencing for all five defendants for June 29.
The firm's former chairman, Robert L. Bevill, 43, faces 15 years in prison; Treasurer John D. Rooney,40, faces 12; Senior Vice President Stuart Gottlieb, 38, faces 10, and Senior Vice President Robert S. Levine faces six.