THE JEFFERIES CHRONOLOGY
Nov. 14: Stock speculator Ivan F. Boesky agrees to pay $100 million to settle charges of trading on insider information. He also agrees to cooperate with investigators and to plead guilty to a single, unspecified criminal charge.
March 19: Boyd L. Jefferies, founder of the Los Angeles securities firm Jefferies & Co., agrees to plead guilty to two criminal charges involving securities law violations, including one deal involving Boesky. He is not accused of insider trading. Jefferies, who was implicated by Boesky, resigns as chairman of Jefferies & Co. and agrees to stay out of the securities business for at least five years.
Dec. 18: Boesky is sentenced to a three-year prison term but not fined.
July 6: Using information supplied by Jefferies, a federal grand jury in Manhattan indicts GAF Corp., company Vice Chairman James Sherwin and two subsidiaries on charges that they manipulated the price of Union Carbide stock in 1986 after a failed attempt to acquire the company.
Nov. 3: A grand jury indicts Salim B. (Sandy) Lewis, a well-known takeover speculator, on charges that he manipulated the stock price of Fireman’s Fund Corp. in 1986 to help American Express Co. sell part of its Fireman’s Fund stake for more money. The indictment is based partly on disclosures by Boyd Jefferies more than a year earlier.
Dec. 22: Corporate raider and Singer Co. Chairman Paul A. Bilzerian is indicted by a grand jury on 12 felony counts linked to four unsuccessful takeover deals in 1985 and 1986. Charges include securities and tax fraud, conspiracy and making false disclosure statements. Jefferies supplied some of the material used in the indictment.
Jan. 3: Jefferies makes his courtroom debut, testifying that GAF and Sherwin asked him to manipulate the price of Union Carbide stock in the fall of 1986.
Jan. 10: U.S. District Judge Mary Johnson Lowe declares a mistrial in the GAF case, ruling that prosecutors withheld, albeit unintentionally, a key document.
Feb. 6: Jefferies takes the stand in the GAF retrial, repeating his allegations against GAF.
Feb. 8: Defense lawyers attack Jefferies’ credibility, labeling him a “crook” who had done a “dirty deal” with Boesky.
Feb. 27: Jefferies & Co. head trader James Melton contradicts testimony by his former boss. Melton said he didn’t recall a request by Sherwin to manipulate Carbide stock, as Jefferies had testified.
March 22: After 12 days of deliberations, the GAF jury reports that it is hopelessly deadlocked and Judge Lowe declares a second mistrial. Jurors later say they didn’t believe Jefferies’ testimony.
May 10: Jefferies testifies that he purchased and held blocks of stock for Bilzerian in four companies in 1985 and 1986. A Jefferies & Co. executive later corroborates his testimony.
June 9: Bilzerian is convicted.
June 29: Jefferies, his lawyer and government prosecutors meet with U.S. District Judge Morris Lasker to discuss his sentencing. Prosecutors praise his cooperation and Jefferies’ lawyer requests probation and no jail term. Lasker indicates that some prison time is likely.
July 6: Jefferies is sentenced to five years probation and fined $250,000 after pleading guilty.