CALIFORNIA | LOCAL
January 29, 1988
Bellflower has filed suit against E. F. Hutton to recover more than $200,000 that city officials say was lost in last October's stock market crash because the brokerage firm improperly invested city funds. The federal court suit alleges that the investment firm "negligently advised and directed Bellflower in its investment decisions." Bellflower officials say a former account representative with E. F.
May 2, 1990 |
A federal judge in Los Angeles Tuesday sentenced a Malibu man to 16 years in federal prison and ordered him to pay $2.6 million in restitution to six financial institutions he was convicted of defrauding. U.S. District Judge Consuelo B. Marshall imposed the stiff sentence on Michael Saul Scherzer, 46. "It is an appropriate sentence for one of the worst recidivists whom we've prosecuted in the bank fraud area," said Terree A. Bowers, chief of the major frauds section of the U.S.
June 21, 1988 |
A jury on Monday cleared former Atty. Gen. Griffin B. Bell in a civil suit that charged him with libeling a former E. F. Hutton brokerage manager in a 1985 report about the company's check-kiting practices. The U.S. District Court panel found that Bell, who had been hired by Hutton to investigate the scheme after the company pleaded guilty to mail and wire fraud charges, had not defamed John Pearce. Pearce, who managed Hutton branches in Bethesda, Md., and in St.
November 24, 1987 |
Securities giants E. F. Hutton Group and Shearson Lehman Bros. began merger talks Monday, just hours after Hutton disclosed that it had received unsolicited "indications of interest" from an unspecified number of suitors about buying all or a portion of the company. Hutton, dogged by weak earnings and legal problems in recent years, disclosed early Monday morning that it had been approached about the possible acquisition.
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.