L.A. broker to plead guilty in Boesky tie-in

Boyd L. Jefferies, founder and chairman of the Jefferies Group Inc., said yesterday he will plead guilty to two felony counts of violating federal securities laws. One of the charges stems from dealings with an entity controlled by Wall Street speculator Ivan Boesky, which allowed it to make false entries in its books. Mr. Boesky agreed in November to settle civil insider-trading charges by paying $100 million.

Mr. Jefferies has consented to an administrative order barring him from the securities business for at least five years and has agreed to place his 13 percent holding in Jefferies Group stock in a voting trust during that period.

One of the felony charges against Mr. Jefferies resulted from a transaction in which he, in behalf of his firm, agreed to buy certain stocks from companies controlled by Boesky with the understanding he would sell the stocks back to Boesky at a later date. The transaction, known as ``parking'' securities, enabled Boesky to falsify the true extent of his stock holdings.

Jefferies, in a letter to employees and shareholders, said he accepts ``sole responsibility for these transactions. I think it is appropriate that I suffer the consequences for my actions rather than the company.''

Jefferies & Co. rose to prominence in recent years by becoming a major broker in the ``third market,'' in which securities are traded away from the centralized trading floors of the New York and American Stock Exchanges. The firm in particular specialized in trading huge blocks of stock in single transactions.

About these ads
Sponsored Content by LockerDome

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...

Save for later

Save
Cancel

Saved ( of items)

This item has been saved to read later from any device.
Access saved items through your user name at the top of the page.

View Saved Items

OK

Failed to save

You reached the limit of 20 saved items.
Please visit following link to manage you saved items.

View Saved Items

OK

Failed to save

You have already saved this item.

View Saved Items

OK