Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, July 13, 1990 TAG: 9007130198
SECTION: NATIONAL/INTERNATIONAL PAGE: A1 EDITION: METRO
SOURCE: Associated Press
DATELINE: NEW YORK LENGTH: Medium
Jurors had found Mulheren guilty Tuesday of four counts of conspiracy and stock manipulation but said they were deadlocked on remaining charges.
"I am now persuaded that unanimity is beyond the reach of this jury on the remaining counts," U.S. District Judge Miriam Goldman Cedarbaum said on the panel's ninth day of deliberations.
Mulheren, 41, was an aggressive and successful trader in stocks of companies targeted for takeover before he was implicated in 1988 in the government's fraud investigation by Boesky, a former friend and associate.
A 1971 graduate of Roanoke College, Mulheren has donated more than $2.5 million to his alma mater. He was on the college's board of trustees from October 1980 until October 1985. His wife is on the board now.
His trial was marked by Boesky's first public testimony under his settlement with investigators. Boesky spent two years in prison and paid $100 million in penalties to settle insider trading charges.
It was the first trial conviction of anyone based on information supplied by Boesky, who agreed in 1986 to cooperate with prosecutors in settling the biggest case of illegal insider trading ever.
Prosecutors said they could not immediately comment on whether they planned to retry Mulheren on the oustanding counts of securities fraud, mail fraud and record-keeping violations.
"We're very satisfied with the verdict," Assistant U.S. Attorney Scott Gilbert said.
Defense attorney Thomas Puccio said he planned to appeal the verdict on the four counts. "It's been my view that Mr. Mulheren is not guilty of any of the charges," he said.
The charges which the jurors did not decide alleged that Mulheren secretly held or "parked" large blocks of stock to help Boesky evade taxes and federal securities disclosure laws.
Parking is the illegal practice of disguising ownership of securities to avoid federal reporting requirements.
by CNB