The SEC's Case Against Drexel: Defendants' Lawyers Say Charges Won't Stand Up

Lawyers for Drexel Burnham Lambert Inc. and other defendants in the Securities and Exchange Commission's complaint plan a slashing defense in which they will attempt to compel testimony from Ivan Boesky and others who provided information to the government. Martin Flumenbaum, an attorney for de...

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Bibliographic Details
Published inThe Wall Street journal. Eastern edition
Main Author By Stephen J. Adler and Laurie P. Cohen
Format Newspaper Article
LanguageEnglish
Published New York, N.Y Dow Jones & Company Inc 08.09.1988
EditionEastern edition
Subjects
Attorneys
Deposition
Insider trading
Public prosecutors
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Summary:Lawyers for Drexel Burnham Lambert Inc. and other defendants in the Securities and Exchange Commission's complaint plan a slashing defense in which they will attempt to compel testimony from Ivan Boesky and others who provided information to the government. Martin Flumenbaum, an attorney for defendant Michael Milken, said, "The complaint is based almost entirely on the false accusations of Ivan Boesky." He added, "It is obvious that Mr. Boesky was motivated to lie and make false accusations." Mr. Lawler said that "you can reasonably anticipate that we will defend this case aggressively." He said that the attorneys will probably move quickly to get depositions from a number of individuals, including Mr. Boesky. He said, however, that in civil cases already pending in which Mr. Boesky is a defendant, "The U.S. attorney has gone into court to request that depositions be stayed," and that that may happen in this case, too. If depositions are stayed, the SEC's case could not proceed.
ISSN:0099-9660