Den of Thieves

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Den of Thieves Page 68

by James B. Stewart


  arraignment of, 300

  arrest of, 18, 19, 295–99, 524

  background of, 68–71

  Bahamas trips by, 85, 89, 154

  Boesky and, 156–59, 253–54, 544n

  Carberry’s interrogation of, 308–11

  Clabir-HMW takeover and, 142–44, 148

  Coastal-ANR deal and, 158, 159

  codes used by, 79, 85–86

  cover-up plan of, 276–78, 281–82, 287–88

  Criton deal and, 91–92

  Crown Zellerbach deal and, 160–62

  custom résumé of, 154–55

  death threat against, 311

  at Drexel, 151, 154–58

  early career of, 72–74

  extravagant spending by, 153–58

  Fifth Amendment taken by, 306

  “genius plan” of, 294–95

  Gleacher’s practical joke on, 89–90

  Goldsmith as model for, 159–61

  guilty plea by, 312–13

  Hill and, 73–76, 86, 89, 90–91

  Kay’s bonus interview with, 163

  Kay’s perception of, 155–56, 158

  Lazard office searched by, 80–81

  at Lehman Bros., 88–90

  marriage of, 71

  media coverage of, 301

  Meier’s naming of, 285

  in Metropolitan Correction Center, 298–99

  Pitt’s naming of, 293–94

  at Predators’ Ball, 159

  Reich’s relationship with, 81–87, 92–93, 144–45, 147, 148, 314–15

  SEC freezes assets of, 295, 305–7

  SEC investigation of, 276–78

  SEC testimony of, 150–51

  sentencing of, 317–18

  Shad’s letter to, 286

  “60 Minutes” feature on, 530–31

  Swiss account of, 74, 85

  Textron deal and, 149–51

  Wang’s interrogation of, 150–51

  Wilkis and, see Wilkis, Robert

  Levine, Laurie Skolnick, 71, 72, 163, 295–96, 300

  Levine, Philip, 70, 86, 152–54, 306

  Levine, Robert, 318–19

  Levine, Theodore, 31, 322, 339

  Levy, Gustave, 174, 235

  Lewis, Drew, 439

  Lewis, Reginald, 442, 467

  Lewis, Salim B. “Sandy,” 95, 96, 193, 345, 395

  L. F. Rothschild, 42

  Liman, Arthur, 297, 298, 305–8, 318, 365, 366, 437, 439, 442, 446–49, 463, 465, 467, 469, 474–75, 476–77, 484, 487–88, 502, 508–9, 511, 512, 517, 523

  Limited, 148

  Lincoln National Life Insurance, 236

  Lincoln Savings and Loan, 66, 237, 522

  Lindner, Carl, 54, 67, 130, 137, 138, 260, 453

  Linton, Robert, 130, 242, 416, 465, 468, 477, 479

  Lipper Analytical Services, 503–4

  Lipton, Martin, 31, 32, 33, 108, 112, 143, 147–48, 155, 166, 285, 297, 317, 350, 534

  liquidity, 54, 57

  Litt, Robert, 364–65, 368, 378, 449, 452–55, 466, 469, 484, 485, 486, 487, 509

  Little, Donald, 166, 236, 392, 554n

  Litton Industries, 141

  Lombard, Carole, 58

  Lompoc Federal Prison Camp, 431

  London Stock Exchange, 125

  Long, Arthur, 31

  Lorenzo, Frank, 260

  Los Angeles Times, 176, 320, 441, 468

  Boesky article in, 173

  Lowy, George, 161

  Ludlum, Robert, 64

  Lynch, Gary, 315–16, 320, 338, 392, 431

  background of, 273

  Bank Leu investigation and, 286–87, 290, 291, 292, 293

  Boesky case and, 325–27, 329, 330–31, 332, 344, 346, 395

  Drexel investigation and, 371–72, 433–34

  Giuliani’s dispute with, 436–38

  Joseph and, 296, 372, 482

  Levine case and, 295, 306–7, 309, 315

  negative press and, 347–48

  resignation of, 508

  Siegel concessions demanded by, 355–56

  McCarthy, Fred, 56, 133, 472, 473–74

  McCarthy, Joseph, 363

  McCaw, Craig, 260

  McCaw, Robert, 273, 322

  McEnany, John, 398, 399, 403, 405, 491, 492–93, 494

  McGowan, William, 259–60, 442

  McGraw Edison, 158

  McKim Mead & White, 109

  MacPherson Partners, 463, 465, 489, 522

  Madonna, 255

  Magowan, Peter, 260, 533

  Mahoney, David, 260

  Malone, John, 260

  Manhattan inc., 416–17

  Marathon Oil, 47

  Mark IV Industries, 234

  Martin, Allan, 316

  Martin, John, Jr., 289

  Martin Marietta, 17, 18, 111–12, 133

  Matarese Circle, The (Ludlum), 64

  Mattel Inc., 137, 411

  Maultasch, Cary, 214, 334, 367, 415, 431–32, 464

  as cooperating witness, 451–52

  in Drexel-SEC suit, 461

  Fifth Amendment invoked by, 435

  incriminating tape of, 411, 434, 451

  Milken’s meeting with, 342

  as Milken’s mole, 62

  Maxwell, Robert, 260

  Maxxam Group Inc., 217

  May, Peter, 260

  MCA Inc., 213–14

  MCI Communications, 442, 481

  MDC Corporation, 334

  Mead Corporation, 160–61

  Meier, Bernhard, 156, 158, 274–76, 287, 290–92, 298

  Levine named by, 285

  Levine’s cover-up plan and, 277–78, 281–82

  Pitt’s meetings with, 278–80, 283–85

  Merger Mania (Boesky), 226, 320

  Merrill Lynch, Pierce, Fenner & Smith, 25, 26, 95, 96, 99, 189, 234–35, 245, 248, 275, 361, 362, 379, 471, 530

  Caracas letter to, 269–72, 374

  Princeton-Newport and, 407

  Metromedia, 222

  Metropolitan Correction Center, 299, 379–80, 429–30

  Metzenbaum, Howard, 256

  MGM/United Artists, 216, 217

  Milken, Gregory, 57

  Milken, Lori Anne Hackel, 52, 61, 118, 223, 489, 510, 518

  Milken, Lowell, 128, 213, 236–37, 240, 258, 334, 341, 363, 365, 367, 370–71, 458–59, 461, 469, 476, 478, 482, 484–85, 486, 497, 502, 510, 516, 522, 523, 525

  Boesky disliked by, 118

  Michael’s hiring of, 64–66

  Otter Creek partnership and, 128–29

  Milken, Michael:

  in agreement to leave Drexel, 484

  altered lifestyle of, 222–23

  apologists for, 533

  army of lawyers of, 365–68, 521

  background and childhood of, 51–53

  Beatrice deal and, 224–25

  black support sought by, 468

  blue book of, 258, 341–42, 458–59

  Boesky’s arrangement with, 213–17, 218–22

  Boesky’s indebtedness to, 236–41

  Boesky’s indictment and, 340–42

  Boesky’s relationship with, 114–15, 117–19, 234–35, 258, 262, 370

  Boesky’s “wired” meeting with, 335–37

  bonus taken by, 243–44

  captive clients of, 256–58

  civil lawsuits filed against, 521–24

  confession of, 511–12

  congressional testimony of, 444

  Crash of 1987 and, 417–18

  customer network of, 66–67

  Dahl and, 58–63, 212–13, 341, 363–64

  Dahl’s plane ride with, 460

  Diamond Shamrock deal and, 211–13

  Drexel-SEC settlement and, 497

  Drexel’s media blitz and, 416–17

  early career of, 52–57

  Engel and, 120, 131–32, 414

  fainting episode of, 66

  Fischbach takeover and, 122–26, 542n

  “genius” myth of, 53

  guilty plea of, 511–12, 5
19, 542n

  Harris Graphics deal and, 217–19

  high-yield conferences and, 134–37

  hiring practices of, 223–24

  Joseph’s bonus dispute with, 243–44

  Joseph’s doubts about, 465–66

  Joseph’s final phone conversation with, 484

  Joseph’s introduction to, 49–51, 53

  lack of remorse of, 364, 519, 532

  legal expenses of, 502

  Lowell hired by, 64–66

  loyalty to, 436

  marriage of, 52

  Maultasch as mole for, 62

  Maultasch’s meeting with, 342

  MGM deal and, 216, 217

  move to California by, 58

  “national treasure” image of, 415, 440

  nickname of, 64

  obsessiveness of, 61–62

  Otter Creek partnership and, 128–30

  Pacific Lumber-Maxxam deal and, 216–17

  personal and family wealth of, 258–59, 524–25, 527

  personality of, 61, 66

  plea bargain of, 485–88, 509–11, 523–25, 559n

  plea negotiations and, 485–88

  in prison, 519, 532

  public relations campaign mounted by, 438–43, 519–20, 532

  on RICO law, 488

  sales methods of, 54–55

  Sandler and, 365–66, 368

  sentence of, 516–18, 519, 520

  Siegel’s meeting with, 248–50

  Storer deal and, 215

  Texas International and, 57

  Turner and, 215–16, 217

  U.S. Attorney’s indictment of, 486–88

  Viacom and, 432–33

  Wall Street Journal parody reaction of, 225

  Williams hired by, 363–65

  at Williams’s funeral, 449

  Winnick and, 57–58, 61, 224

  workday methods of, 58–66

  Millstein, Ira, 413, 445, 461, 476, 478

  Mizel, Larry, 334, 337

  Mobil, 97

  Montgomery, Walter, 443

  Monzert, Pamela, 461

  Mooradian, Rusty, 221

  Mooradian, Setrag, 43–44, 103, 105, 123–24, 169, 207, 220–21, 238–41, 262, 319, 326, 336, 338–39, 373–74, 377, 422, 451, 463, 529

  as cooperative witness, 375–76

  “DBL” file identified by, 405

  Moran, John, 91

  Morgan, J. P., 26

  Morgan Guaranty Trust, 275

  Morgan Stanley, 25, 26, 33, 49, 108, 111, 132, 142, 150, 154, 155, 178, 186, 188, 203, 244, 246, 247–48, 259, 290, 470

  Morger, Joseph, 93

  Morvillo, Robert, 317

  Mudge Rose Guthrie Alexander & Ferdon, 352, 387

  Mulheren, John, 95–96, 157, 169–70, 173–74, 193, 201, 263–64, 305, 323, 330, 333, 373, 394, 395, 508, 530, 531

  arsenal of, 421

  background of, 95–96

  Boesky’s arrangement with, 206–10

  Boesky’s first meeting with, 95–96

  Boesky’s indictment and, 343

  Boesky’s relationship with, 96–97, 100–101, 104–6, 171, 265

  Cities Services deal and, 104–6

  crash of 1987 and, 423

  described, 95–96

  deteriorating mental condition of, 421–25, 427–28, 430

  Gulf + Western takeover attempt and, 232, 233–34, 426, 514

  Gulf Oil deal and, 168–69

  in jail, 429–30

  Jamie Securities founded by, 206

  lifestyle of, 99

  Obermeier’s confrontation with, 427

  reversed conviction of, 528

  son rescued by, 205

  Springsteen befriended by, 204–6, 209–10, 423, 429

  trial of, 513–14

  weapons charge arrest of, 428

  Mulheren, Nancy, 95, 96, 205, 343, 427, 429

  Murdoch, Rupert, 137, 138, 185, 187, 222, 259

  Murdock, David, 183, 260

  Murphy, Eddie, 41, 116

  Myerson, Bess, 440

  Nabisco Brands, 158, 286

  Naftalis, Gary, 301–2, 313, 392, 393

  Nagle, Reid, 225–26, 228, 235, 236, 240, 241, 263, 322, 338

  NASDAQ, 55

  National Can Co., 126–27, 128–30, 138, 258, 444

  National Gypsum, 245

  National Lead, 314

  Natomas Co., 164, 167, 171

  NBC, 390

  Nestlé, 171, 249

  net capital requirements, 207–8, 547n

  Newberg, Bruce, 62, 407, 408, 410, 411, 434, 435, 436, 451, 462–63, 484, 490–91

  Newman, James, 550n–51n

  New Republic, 230

  Newsweek, 301, 344, 530

  New York Daily News, 467

  New York Post, 344, 362, 467

  New York Stock Exchange, 28, 42, 55, 99, 102–4, 170, 201, 207, 270, 418

  Carnation Co. and, 170

  Drexel bankruptcy and, 505–7

  Drexel-National Can investigation of, 129

  New York Times, 88, 202, 216, 303, 310, 360, 441, 442, 467, 489

  Nixon, Richard M., 97

  NL Industries, 314, 316

  Noriega, Manuel, 423

  Northern Trust Co., 236

  Northview Corporation, 117, 118, 228, 235, 322, 327, 337

  Northwest Industries, 138

  Nussbaum, Bernard, 316

  Nye, Richard, 201, 495

  Oakley-Sutton, 406

  Obermaier, Otto, 273, 422, 426–27, 430

  Occidental Petroleum, 105, 106, 211–12, 457

  One Hundred Black Men Society, 468

  O’Neill, Brian, 449, 489–90

  Oppenheim, Appel, & Dixon, 43, 228, 238, 240

  Oppenheim, Steve, 103, 105, 228, 239–40

  options trading, 95

  Otter Creek partnership, 128–30, 258–59, 444

  Ovitz, Michael, 52

  Owen, Richard, 307

  Pacific Asset Holdings, 224

  Pacific Lumber, 216–17, 220, 233, 245, 370

  Pacific Stock Exchange, 102

  “PacMan” defense, 112

  Pahlevi Foundation, 169

  Paley, William, 447

  Palmieri, Victor, 30

  Paltrow, Scott, 441

  Pan American, 253, 255

  Pantry Pride, 246

  Paramount Petroleum, 499

  Paramount Pictures, 135, 230

  Pargas, 173–74

  Parton, Dolly, 255

  Paschall, Robert, 309, 357, 360, 362, 379, 385, 395

  Paul, Weiss, Rifkind, Wharton & Garrison, 252, 297, 305, 308, 365, 367, 368, 442, 446–47, 449, 453–54, 457, 466, 469, 474, 485–86, 502, 509, 511

  Peabody, Francis, 25

  Pecora, Ferdinand, 27

  Pedowitz, Larry, 308, 316, 350–51, 352, 353, 380, 383, 385–86, 492

  Peizer, Terren, 258, 340–42, 458–59, 469, 486

  Peltz, Nelson, 120, 130, 138, 260, 365, 344

  Pennsylvania Engineering, 119, 121–22, 125

  Pennzoil, 165, 365, 439

  Perelman, Ronald, 120, 130, 132, 154, 193, 222, 245, 246, 259, 296, 345, 365, 413

  Peretz, Martin, 230, 236

  Perlmutter, Louis, 80

  Peters, Ianthe, 210, 338

  Peterson, Peter G., 142

  Philip Morris, 199

  Phillips Petroleum, 213, 222

  Pickens, T. Boone, 101, 105, 115, 137, 138, 168, 197–98, 206, 213, 222, 259, 384, 415

  Picower, Jeffrey, 236

  Pictet & Cie., 77, 85

  Pincus & Co., 146–47

  Piper & Marbury, 300

  Pitt, Harvey, 276–77, 286–88, 290, 291–94, 297, 325, 326, 328, 329–30, 335, 339, 364, 373–74

  Bank Leu visit of, 280–81

  Boesky debriefed by, 320–25

  Meier’s meetings with, 278–80, 283–85

  SEC negotiations of, 286–88, 291–93

  Pletscher, Bruno, 276, 278, 280, 281–83, 287, 292–93, 294, 295, 298

/>   “point,” explanation of, 55

  “poison pill,” 166

  Pollack, Milton, 461

  Pomerantz, Mark, 368

  Posner, Steven, 119–20, 461

  Posner, Victor, 119–27, 132, 133–34, 236, 344, 364, 412, 461, 542n

  background of, 119

  Engel and, 121, 130

  Fischbach takeover and, 121–26

  National Can deal with, 126–27, 129–30

  SEC suit against, 119

  Powell, Adam Clayton, 363

  Pownall, Thomas, 17

  Predators’ Ball, 19, 222, 255, 414, 435, 443, 446, 480, 496–97, 499

  evolution of, 134–37

  Predators’ Ball, The (Bruck), 446–48, 467

  Prime Computer, 499

  Princeton-Newport Partners, 194, 406–8, 434, 436, 450, 484, 490, 494, 528

  government raid of, 409–12

  incriminating tapes of, 411–12, 462–63

  Pritzker, Jay, 260

  Pritzker, Robert, 260

  Pritzker family, 120

  Puccio, Thomas, 508–9, 513–14

  Queen Elizabeth II, 264–65

  Racketeer Influenced and Corrupt Organizations Act (RICO) (1970), 371, 450, 467, 471, 473, 478–79, 488, 528

  Milken on, 488

  Raiders of the Lost Ark (film), 460

  Rainwater, Richard, 181

  Rakoff, Jed, 273, 352–58, 359, 364, 386, 389, 396, 399, 402, 434–35, 491, 496, 515

  Rapid-American Corporation, 45

  Rather, Dan, 35

  Rattner, Steven, 88

  Rauch, Michael, 280–81, 282, 284, 291, 293, 294, 322–23, 325

  Ray, Johnny, 45, 340

  Reagan, Ronald, 96, 97, 228, 273, 439

  Regan, Donald, 96

  Regan, James, 194, 406, 408, 411, 435, 450, 484, 490–91, 494, 507, 530

  Reich, Ilan, 91, 145–49, 153, 253, 254, 309–14, 350, 353

  American-Jewel deal and, 145

  background and personality of, 82–84

  Clabir-HMW takeover and, 142, 143, 144–45

  guilty plea of, 317

  Levine’s relationship with, 81–87, 92–93, 144–45, 147, 148, 314–15

  in prison, 529

  SEC subpoena of, 316–17

  sentencing of, 317

  suicidal episode of, 304, 314

  Reich, Yaron, 82–83

  “restricted lists,” 175, 187

  Revlon, 38, 222, 244, 246, 298, 365

  Revson, Charles, 38

  R. H. Macy, 199–200, 244

  Riklis, Meshulam, 45, 54, 130, 235, 498

  Ritch, Hal, 189–92, 251, 391, 401

  River Club, 192

  R. J. Reynolds, 158

  RJR Nabisco, 470–71, 476, 480

  Roberts, George, 200, 259, 388

  Robinson, Jim, 439

  Robinson, Lake, Lerer & Montgomery, 438–43, 446–47, 467–68, 476, 490, 497–98, 504, 508, 510, 516, 519–20, 533

  Robinson, Linda Gosden, 438–41, 442–43, 446–47, 460, 468, 469–70, 476, 510

  Roche, John T. “Jack,” 183–84, 381, 393, 394, 400, 554n

  Rockefeller family, 192

 

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