Former Boesky Aide Indicted On Conspiracy, Fraud Counts
NEW YORK (AP) _ John A. Mulheren Jr., aformer associate of Ivan Boesky accused of threatening the jailed stock speculator’s life, was charged with conspiracy and securities fraud Wednesday in a 42-count federal indictment.
Mulheren, 39, also was charged with mail fraud, keeping fraudulent records and fraud against the Internal Revenue Service in a series of criminal arrangements with Boesky.
Each of the 42 counts against Mulheren is punishable by up to five years in prison and a $250,000 fine.
Mulheren pleaded innocent last month to state weapons possession charges in New Jersey in connection with an alleged plot on Boesky’s life.
He is free on bond from a previous federal charge of threatening a witness stemming from the New Jersey case. U.S. Attorney Benito Romano said the federal charge would be dropped in favor of the state weapons possession charges.
A federal grand jury in Manhattan charged that Mulheren manipulated the price of Gulf & Western Inc. common stock and engaged in a series of sham purchases and sales to aid Boesky’s attempt to evade taxes and circumvent securities laws. Gulf & Western has been renamed Paramount Communications Inc.
The indictment also charged that Boesky provided Mulheren with inside information in exchange for Mulheren’s assistance.
Mulheren was a general partner and chief trader of Jamie Securities, a now- defunct Manhattan investment and arbitrage firm.
Also indicted was Leonard Destefano, a former trader at Jamie. He was named on three counts of conspiracy, mail fraud and fraudulent recordkeeping.
Boesky triggered a series of Wall Street investigations when he paid $100 million to settle insider trading charges with the Securities and Exchange Commission in 1986. He is in the second year of a three-year jail term at a federal prison in Lompoc, Calif.