NEW YORK — Drexel Burnham Lambert's employees have been warned to expect Securities and Exchange Commission charges to be filed against the investment banking firm at any time, a spokesman confirmed.
Sources close to the SEC investigation said, however, that it is unclear when the agency would actually move. As reported, Drexel confirmed last month that the SEC approved a lawsuit charging Drexel and certain employees with securities law violations. But the SEC decided not to file it immediately.
People close to the investigation and the company said Drexel so far has failed to reach a settlement with the SEC on the expected civil charges. Drexel consistently has denied any wrongdoing.
The sources continued to speculate Friday that the SEC may wait to file its civil lawsuit until the U.S. attorney's office in New York completes a criminal investigation of Drexel. The criminal inquiry is expected to continue at least until September. The SEC declined comment.