June 29, 1988 |
E. F. Hutton & Co. has been fined $400,000 and censured by the New York Stock Exchange in connection with the firm's 1985 check overdraft scandal, the NYSE announced Tuesday. Two former Hutton officers, President George L. Ball and Executive Vice President Thomas P. Lynch, the company's chief financial officer, also were censured, the NYSE said in a statement. A censure is one of the mildest forms of sanctions the exchange can impose on members.
December 3, 1987 |
E. F. Hutton Group is expected to announce today that it has agreed to be acquired by Shearson Lehman Bros. in a $1-billion cash-and-securities deal that would create the nation's largest securities firm. Hutton has accepted an offer worth $30 a share barely a week after its waning financial strength and clouded prospects forced it to consider a buyout, industry officials said. The merger would be the largest ever among U.S.
February 17, 1990 |
The Federal Deposit Insurance Corp., the agency that insures deposits at banks, said Friday that it brought a $516-million lawsuit against Drexel Burnham Lambert, E. F. Hutton and others over the failure of a Texas thrift. The suit, filed in federal court, stems from an alleged fraud scheme that the FDIC claims led to the demise of the Guaranty Federal Savings & Loan Assn. in Dallas, the sixth-largest thrift in Texas.
May 7, 1988 |
E. F. Hutton & Co. was charged Friday with three criminal felony counts in connection with an alleged scheme by Hutton brokers in Providence, R.I., to launder more than $532,000 for Rhode Island organized crime figures and others in 1982 and 1983. The brokerage, now part of the huge Shearson Lehman Hutton investment firm, was charged with two counts of failing to file currency-transaction reports and one count of causing another firm to fail to file such reports.
December 15, 1987 |
Merrill Lynch & Co. said Monday that it would lay off an unspecified number of employees, reduce commissions and freeze some salaries next year as part of a cost-cutting restructuring. Officials of the giant investment firm declined to state how many employees could lose their jobs or how much money it could save by the cutbacks. Separately, E. F.
June 29, 1987
Arnold H. Phelan, executive vice president of E. F. Hutton & Co. futures division, has stepped down temporarily because of a reported link to a money-laundering operation that was part of the Mafia-run "Pizza Connection" heroin and cocaine ring, the brokerage said. Phelan's attorney, Howard Schneider, said Phelan was confident he had done nothing wrong and that he expected to be back on the job shortly.
July 17, 1987 |
You know you're in trouble when the boss mails you a coloring book and some crayons. That's precisely the message that E. F. Hutton & Co. is trying to get across. 'We're no longer the nicest house on the block," says the "Hutton Coloring Book," which is being mailed to 18,500 employees. "We're not even close. In fact, we're in big trouble." "A coloring book is a very simple and participatory means for different levels of people to all get the same message," said Jerry C.
January 15, 1988 |
In the latest fallout from Wall Street's retrenchment wave, Paine Webber Group, E. F. Hutton Group and Shearson Lehman Bros. began a legal battle in Switzerland on Thursday stemming from employees changing loyalties. E. F. Hutton and Shearson, which late last year agreed to merge, said they filed a criminal complaint against Paine Webber in Switzerland for allegedly stealing client records and brokerage business from Hutton.
May 17, 1988 |
E. F. Hutton & Co. paid $1.01 million in fines on Monday for a money-laundering scheme in which $1.5 million in cash was hidden from the government for clients, some of them members of organized crime. Hutton attorney E. Lawrence Barcella Jr. signed a guilty plea to three felony counts and turned a check for the fine over to U.S. Attorney Lincoln C. Almond.