Drexel Chief Takes Stand: Drexel Burnham Lambert...

Drexel Chief Takes Stand: Drexel Burnham Lambert Inc.’s chief executive, Frederick H. Joseph, took the witness stand for the first time in a criminal case since Drexel agreed to plead guilty to federal securities fraud counts and cooperate with the government’s continuing investigation. Joseph appeared as a prosecution witness in the federal government’s case against former officials of Princeton/Newport L.P. The officials are accused of participating in an illegal scheme with Drexel to hide the ownership of securities. Joseph, however, testified only about routine procedures at Drexel and explained certain technical terms. He didn’t talk about any of the illegal activity in which Drexel allegedly was involved. Joseph is due to be cross-examined today by defense lawyers.