Shearson, Paine Webber Found Guilty: E. F....

Shearson, Paine Webber Found Guilty: E. F. Hutton, now owned by Shearson Lehman Hutton, and Paine Webber were found guilty of violating securities laws by a jury that awarded $18 million to the city of San Jose, the city said. A federal jury in Northern California found that Hutton and Paine Webber violated the Securities and Exchange Act by recommending that the city make unsuitable investments in 1984. The jury also found that the accounting firm Price Waterhouse negligently failed to detect the securities laws violations as the city’s auditor.