U.S. Delays Indictment of Mulheren

Federal prosecutors Tuesday agreed to a 48-hour delay in filing an indictment against John A. Mulheren Jr., the former manager of an investment partnership who was arrested in February for allegedly planning to kill financier Ivan F. Boesky.

U.S. Atty. Rudolph W. Giuliani’s office declined to comment on the reasons for the delay or the specific charges in the indictment. But Mulheren’s lawyer, Thomas P. Puccio, said the delay was granted to allow for last-minute talks with the prosecutors.

“As far as I’m concerned, we’re invited to discuss the matter further with them to persuade them that charges should not be filed,” Puccio said.

The lawyer said Mulheren isn’t contemplating a guilty plea or any deal with prosecutors.

Mulheren was arrested Feb. 18 outside of his New Jersey home. He allegedly was carrying a loaded Israeli-made assault rifle and was accused of planning to kill Boesky, formerly one of Wall Street’s most successful stock speculators, and Boesky’s former chief trader, Michael Davidoff. Boesky, a central figure in Wall Street’s biggest insider trading scandal, had pleaded guilty to a felony count and paid a $100-million penalty. He and Davidoff also were cooperating with prosecutors by providing information on former business associates, including Mulheren.

As a result of information from Boesky and Davidoff, Mulheren reportedly has been under investigation for violating securities laws, including helping Boesky to hide his ownership of large blocks of stock. Boesky, currently serving a three-year prison sentence, was recently brought to New York to testify before a federal grand jury. He reportedly was testifying about Mulheren.

It wasn’t clear Tuesday whether the indictment would include charges of violating securities laws as well as charges of threatening federal witnesses.