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United States Court of Appeals for the Second Circuit
May 20, 1991, Argued ; July 10, 1991, Filed
No. 1557, Docket 90-1691
[*365] McLAUGHLIN, Circuit Judge.
In the late 1980's a wide prosecutorial net was cast upon Wall Street. Along with the usual flotsam and jetsam, the government's catch included some of Wall Street's biggest, brightest, and now infamous -- Ivan Boesky, Dennis Levine, Michael Milken, Robert Freeman, Martin Siegel, Boyd L. Jeffries, and Paul A. Bilzerian -- each of whom either pleaded guilty to or was convicted of crimes [**2] involving illicit trading scandals. Also caught in the government's net was defendant-appellant John A. Mulheren, Jr., the chief trader at and general partner of Jamie Securities Co. ("Jamie"), a registered broker-dealer.
Mulheren was charged in a 42-count indictment handed-up on June 13, 1989. The indictment alleged that he conspired to and did manipulate the price on the New York Stock Exchange (the "NYSE") of the common stock of Gulf & Western Industries, Inc. ("G & W" or the "company") in violation of 18 U.S.C. § 371, 15 U.S.C. § 78j(b) & 78ff and 18 U.S.C. § 2, by purchasing 75,000 shares of G & W common stock on October 17, 1985 for the purpose of raising the price thereof to $ 45 per share (Counts One through Four); that he engaged in "stock parking" transactions to assist the Seemala Corporation, a registered broker-dealer controlled by Boesky, in evading tax and other regulatory requirements in violation of 15 U.S.C. §§ 78j(b) & 78ff and 18 U.S.C. § 2 (Counts Five through Twenty-Four); that he committed mail fraud in connection with the stock parking transactions in violation of 18 U.S.C. §§ 1341 & 2 (Counts Twenty-Five through Thirty-Nine); and that Mulheren caused Jamie [**3] to make and keep false books and records in violation of 15 U.S.C. § 78ff & 78q(a) (Counts Forty through Forty-Two).
Count Forty-One was dismissed before trial on the government's motion. At the conclusion of the government's case, the district court dismissed Counts Twenty-Nine through Thirty-Nine pursuant to Fed. R. Crim. P. 29. Of the remaining thirty counts, the jury returned a partial verdict of guilt on Counts One through Four. A mistrial was declared by the district court when the jury could not reach a verdict on the other twenty-six counts. On Counts One through Four, Mulheren was sentenced to concurrent terms of one year and one day imprisonment, a $ 1,681,700 fine and a $ 200 special assessment.
Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.
938 F.2d 364 *; 1991 U.S. App. LEXIS 14392 **; Fed. Sec. L. Rep. (CCH) P96,082
UNITED STATES OF AMERICA, Appellee, v. JOHN A. MULHEREN, JR., Defendant-Appellant
Prior History: [**1] Appeal from a judgment entered in the United States District Court for the Southern District of New York (Miriam Goldman Cedarbaum, District Judge) convicting defendant of conspiracy to commit securities and mail fraud in violation of 18 U.S.C. § 371 and three counts of securities fraud in violation of 15 U.S.C. § 78j(b) and 78ff.
stock, shares, manipulation, trading, per share, common stock, conversation, percent, Counts, transactions, purchases, investor, convictions, domination, broker, buy, no evidence, telephone
Criminal Law & Procedure, Trials, Burdens of Proof, Defense, Standards of Review, Substantial Evidence, General Overview, Fraud, Securities Fraud, Securities Law, Self-Regulating Entities, National Securities Exchanges