OTHER NEWS - June 22, 1992

Government Credits Milken’s Testimony: In a letter that may lead to a reduced sentence for Michael R. Milken, federal prosecutors told a judge that the testimony of the one-time junk-bond king “substantially assisted” the government’s case against his former aide. However, U.S. Atty. Roger S. Hayes’ review of Milken’s first appearance as a government witness was not entirely positive. In the letter, delivered late Friday to U.S. District Judge Kimba Wood, Hayes noted that Milken’s help was “partially undercut” when he “flatly contradicted the testimony” of other government witnesses. Milken pleaded guilty in 1990 to securities fraud and was sentenced to 10 years. He is ineligible for parole until 1994. Judge Wood has said that any reduction in sentence will depend on the degree and value of Milken’s cooperation in the government’s prosecution of other securities fraud cases.