Newsclipping summary:

FEAR-List Bulletin posted by Brenda Grantland, 9/20/95
 

The AP reports that Robert Cochran and Michael Garrett, two former investment bankers with the St. Louis based firm of Stifel, Nicolaus and Co. Inc., were indicted for wire fraud and money laundering, based on allegedly defrauding state and local agencies in a multi-million dollar bond underwriting scam.

"The indictment alleged they helped rig bond issues underwritten by Stifel. In return, the investment firms that won the contracts made secret payments to Stifel from which Cochran and Garrett benefited. The indictment seeks the forfeiture of more than $2 million from Cochran."

In keeping with the government's double jeopardy practices, the Securities and Exchange Commission also filed a civil lawsuit against Cochran, Garrett and Randall Nelson, another former Stifel executive, seeking the disgorgement of the amount by which they were allegedly unjustly enriched. The civil suit also seeks civil penalties against Cochran and Nelson.

"Just last month, Stifel agreed to pay $1.4 million to settle charges it received improper payments from investment brokers. The firm did not admit or deny guilt in making the settlement," AP reported.

One wonders how much money the government will eventually get out of this case, using their powers to heap financial punishment upon financial punishment. This case is a financial goldmine for forfeiture prosecutors, especially with Stifel having such a deep pocket. The AP reported that "Stifel's Oklahoma office . . . was a dominant force in the Oklahoma muni-bond market, serving as an underwriter for almost $2 billion in municipal bonds issued in the state between 1989 and 1993."