OTHER NEWS - Sept. 9, 1992

Princeton/Newport Sentences Canceled: A federal judge vacated the sentences, including fines and three-month prison terms, of Bruce M. Newberg and Charles M. Zarzecki, the last remaining defendants in the Princeton/Newport Partners securities fraud and racketeering case. Six defendants had been convicted in 1989 in a case based on alleged illegal securities trading to evade taxes. But an appeals court last year overturned the convictions of four of the defendants. Prosecutors declined to retry the case. In a ruling made public Tuesday, U.S. District Judge Robert L. Carter said he canceled the sentences of Newberg, a former Drexel Burnham Lambert trader, and Zarzecki, an ex-Princeton/Newport executive, because they were “minor participants” and “with the principal actors escaping criminal penalty, it seems grossly unjust to single these defendants out for punishment.” The case was an outgrowth of the government’s investigations of Ivan Boesky and Michael Milken.