NEW YORK — The Securities and Exchange Commission took a long-expected step Monday and banned former Drexel Burnham Lambert junk bond chief Michael Milken from the securities industry for life.
The SEC also imposed a permanent ban on his brother, Lowell. The orders were part of a settlement of SEC administrative charges pending against the two.
Michael Milken, 44, earlier this month began serving a 10-year term at a minimum-security federal prison in Northern California. After pleading guilty to six felony counts last year, he also paid $600 million in penalties.
The permanent ban was expected because Milken pleaded guilty to multiple felony counts. The SEC, however, could have imposed lesser penalties, such as a ban that allowed the brothers to reapply for securities industry positions after several years. The permanent ban means that the Milken brothers can never again work for a securities broker-dealer.