The federal grand jury indictment against Michael Milken, Lowell Milken and Bruce L. Newberg accuses the defendants of three groups of racketeering law violations. A summary of the allegations follows (Except where indicated, Michael Milken allegedly acted without his two co-defendants.): Actions Involving Ivan F. Boesky
Fischbach Corp.: Engaged in securities and mail fraud between July, 1984, and February, 1985, when it accumulated Fischbach securities and made false filings with the Securities and Exchange Commission to aid in a takeover of the company.
MCA: The price of the stock of the Universal City-based entertainment company was manipulated in connection with Golden Nugget’s sale of MCA stock from August, 1984 to December, 1984.
Diamond Shamrock/Occidental Petroleum: Securities and mail fraud in the form of insider trading in connection with the unsuccessful merger of the two companies in January, 1985.
Boesky Organization: Securities and mail fraud in connection with bogus tax trades by Ivan F. Boesky’s business organization. Unlawful trading between the defendants and the Boesky organization to balance a secret account. Michael and Lowell Milken also engaged in securities, mail and wire fraud in connection with raising $660 million in financing for the Boesky organization in March, 1986.
Phillips Petroleum: Michael and Lowell Milken engaged in securities and mail fraud in connection with Boesky’s parking of Phillips stock with and through Drexel.
Storer Communications: Insider trading in July, 1985, in connection with Kohlberg Kravis Roberts & Co.'s acquisition of Storer Communications.
Pacific Lumber: Securities fraud in connection with Boesky’s accumulation of Pacific Lumber common stock during the firm’s acquisition by Maxaam Inc. in 1985.
Harris Graphics: Engaged in securities and mail fraud in connection with Boesky’s accumulation of Harris Graphics stock and made a false disclosure to the SEC.
MGM/UA: During the 1985 acquisition of MGM by Turner Broadcasting, MGM/UA securities were held in the name of the Boesky organization for the joint benefit of the defendants and the Boesky organization.
Stone Container/Wickes Companies: Securities, mail and wire fraud in April, 1986, transactions to manipulate the stock of the two companies.
Actions Involving Princeton / Newport Partners
COMB Co.: Michael Milken and Newberg caused Princeton/Newport to manipulate the price of COMB securities in March and April of 1985.
U.S. Home Corp.: Michael Milken and Newberg caused Princeton/Newport to manipulate the price of U.S. Home securities in April, 1985.
Mattel: All three defendants engaged in securities fraud by concealing their interest in Mattel securities in connection with a financial overhaul of Mattel.
Michael Milken and Newberg engaged in securities, mail and wire fraud in connection with creating fraudulent tax losses for Princeton/Newport.
Actions Involving Lorimar and Viacom
Insider trading of securities of the two companies.