Shearson Lehman, 2 Employees Face Fraud Charges

A grand jury Friday 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.

Authorities said Strauss made heavily margined, speculative and unauthorized investments with full knowledge of his supervisors.