Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, April 4, 1990 TAG: 9004040684
SECTION: BUSINESS PAGE: C7 EDITION: EVENING
SOURCE: Associated Press
DATELINE: NEW YORK LENGTH: Medium
Boesky's term formally ends today, meaning he no longer will have to report to a Brooklyn halfway house once a week as had been required to do in recent weeks, the former Wall Street powerhouse's lawyer, Robert McCaw, said Tuesday.
"This is the legal date on which he is no longer subject to the custody of the Bureau of Prisons," McCaw said. "Otherwise it's not a date of significance."
McCaw said the former stock speculator has been living elsewhere for nearly two months, but would not specify where.
The 53-year-old Boesky still will have to report to a probation officer once a month for six months.
In 1986, Boesky moved to settle insider-trading charges by paying $100 million to the Securities and Exchange Commission and agreeing to plead guilty to lying to federal regulators.
He was sentenced to three years in prison, beginning his term at the minimum-security Lompoc Federal Prison Camp in California in April 1988. He was released early for good behavior and transferred to the halfway house in December.
Boesky is expected to testify against former Drexel Burnham Lambert Inc. junk bond financier Michael Milken, whose trial may not begin until 1991.
Asked about Boesky's plans, a source close to Boesky said he is "playing a very low profile and readjusting, staying away from the cameras and reporters."
The source said Boesky would not give any interviews until he has finished his role as a government witness, if then.
As part of his plea, Boesky agreed to cooperate with prosecutors in the continuing Wall Street crackdown and offered information that led to Drexel's record $650 million settlement of criminal and civil securities charges and the indictment of Milken a year ago. Drexel is liquidating now after its parent filed for bankruptcy protection in February.
Boesky caused a stir in November when he was photographed by a New York tabloid in Stamford, Conn., with shoulder-length gray hair and a long, scraggly beard. He was spotted a month later in a business suit in New York City, his hair and beard neatly trimmed.
by CNB