P.M. BRIEFING : Shearson Lehman Inc. Indicted
A grand jury today indicted Shearson Lehman Brothers Inc. and two former employees on securities fraud charges stemming from millions of dollars in customer losses in the stock market crash of 1987.
In addition to the corporation, the 42 indictments handed up by a Cuyahoga County grand jury named Sheldon Strauss, a former account executive at Shearson’s Cleveland office, and Stephen Weinberg, the former office manager.
Strauss was charged with fraud and false representations in the sale of securities, and Weinberg and the corporation were charged with complicity in Strauss’s actions.
A spokesman for the Ohio Division of Securities, which investigated the case, said Shearson Lehman has already settled more than $4.9-million worth of claims from Strauss’s former clients, many of whom suffered extensive losses on “Black Monday,” Oct. 19, 1987.
