P.M. BRIEFING : Junk Bond King Milken Forced Out of Drexel, Will Start His Own Firm

Michael Milken, the junk bond king indicted for fraud and racketeering in the largest securities crime case ever, said today that he is quitting his job at the investment bank and will start his own firm.

Milken, 42, was placed on a forced leave of absence by Drexel Burnham Lambert Inc. on March 29, the same day he was indicted by a federal grand jury on 98 counts of racketeering and securities fraud. He has denied the charges, and his trial is expected to be long and complex.

Milken is credited with making billions of dollars for Drexel through his pioneering use of junk bonds--lower-grade securities that offer high yields. But he has become a key target in the government’s widening case against illegal insider trading on Wall Street.

Milken said he will form International Capital Access Group, a consulting firm that he said will provide advice to individuals, communities and companies, emphasizing opportunities for employees, minorities and unions.

Milken said he was disappointed that he was forced to leave Drexel as part of the company’s settlement of securities fraud charges with the government.