E. F. Hutton Charged With Federal Count of Laundering Funds
The government today charged E. F. Hutton & Co. Inc. with conspiracy and laundering at least $532,000 for organized crime figures and businessmen who wanted to hide income from the Internal Revenue Service.
U.S. Atty. Lincoln C. Almond said the company is expected to plead guilty at a hearing May 16 and faces a fine of $1.01 million.
Two Hutton brokers were also named in the criminal information. Almond said one of the brokers has died and charges will be filed next week against the other, who has left Hutton.
E. F. Hutton was acquired by Shearson Lehman Brothers Inc. last year. The felony money-laundering and conspiracy charges are the result of a much publicized investigation into the activities of Hutton’s Providence office.