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Drexel Burnham Lambert

Controversies

Controversies tied to this brand in public sources. A listing is not a finding of fault.

Back to profile5 entries

  1. 1989

    Michael Milken securities case

    Milken left Drexel after reaching a criminal resolution and pleading guilty to securities-related charges. His departure removed the person most closely associated with the firm's high-yield business.

  2. 1988

    SEC securities-fraud action

    The SEC accused Drexel of insider trading, stock manipulation, defrauding clients and stock parking in transactions involving Milken's department.

  3. 1988

    MacPherson Partners conflict-of-interest controversy

    A limited partnership connected to Milken's department involved his family members and money-fund managers. Its undisclosed structure raised concerns about self-dealing, improper benefits and violations of Drexel's internal rules.

  4. 1987

    Martin Siegel insider-trading case

    Martin Siegel, a senior mergers-and-acquisitions executive, pleaded guilty to sharing inside information with Boesky during his earlier tenure at Kidder, Peabody, adding to concerns about the firm's senior deal-making culture.

  5. 1986

    Dennis Levine insider-trading case

    Drexel managing director Dennis Levine was charged with trading on confidential merger information. His cooperation helped investigators examine relationships among Drexel personnel, Ivan Boesky and other Wall Street participants.