Milken Says SEC Will Find Nothing Amiss
Michael R. Milken said Friday that the government’s latest investigation of him will find no wrongdoing, saying “we didn’t even get to the 50-yard line” in flouting restrictions on advice to friends such as Ted Turner.
“We wanted to stay in our own end zone,” Milken said in an interview with the Associated Press, his first since his probation for securities fraud was extended by three months.
Milken, who shook the 1980s financial world with junk bonds that fueled new ventures and takeovers of old ones, appeared resigned to and unconcerned about the Securities and Exchange Commission investigation.
The SEC’s scrutiny did not turn serious until it was disclosed that Turner, chairman of Turner Broadcasting System Inc., intended to reward Milken with $50 million for consulting on the sale of TBS to Time Warner Inc.
The sale has yet to be completed and no payment has yet been made.
“Hopefully, when he does pay we’re going to have a lot more money for prostate research,” said Milken, who was found to have prostate cancer three years ago and has spent more than $20 million assembling a team of scientists in a Manhattan Project-style attempt to find a cure.
In settling SEC charges in 1990, Milken agreed to be banned from the securities industry. He said he has not provided advice on securities transactions or detailed investing, concentrating only on “macro” strategic consultations.
He said when advising old friends such as Turner, News Corp. Chairman Rupert Murdoch and New World Communications Group Chairman Ronald Perelman, the contracts were drawn up so gray areas were avoided.
Milken’s probation was to have ended Friday. On Thursday in New York, however, U.S. District Judge Kimba M. Wood extended it, giving authorities more leverage over Milken while the SEC investigation continues.
Authorities said the probation could be extended again if the investigation is not finished by June 1.
However, Milken’s community service was declared completed and six conditions of his probation were lifted, including regular visits with a probation officer and the need to get permission to travel outside Los Angeles County.
