A federal judge sentenced former Wall Street speculator John Mulheren Jr. to a year and a day in prison for conspiring with fellow wheeler-dealer Ivan Boesky to illegally manipulate stock prices.
Mulheren also was fined $1,681,700 Wednesday for his July 10 conviction on four counts of conspiracy and securities fraud that included conducting sham stock transactions and insider trading.The burly defendant showed no emotion as he was sentenced by U.S. District Judge Miriam Goldman Cedarbaum. Behind him, his white-haired father, John Mulheren Sr., wept.
Mulheren was convicted after a seven-week trial on charges of manipulating the stock price of Gulf & Western Inc., now Paramount Communications Inc., so Boesky could get a good price for the 4.9 percent stake he held in the company after a failed takeover attempt.
Cederbaum sentenced Mulheren to a year and a day on each of the four felony counts - to be served concurrently. That would mean he could be eligible for parole in two months.
Cedarbaum said she was imposing prison time because she wanted everyone to "be aware that anyone who tampers with the stock market will be punished, will go to prison."
The judge said she figured the fine of $1,681,700 by calculating the amount of loss by Gulf & Western stockholders between 11:04 and 11:16 a.m. on Nov. 16, 1985, when the stock was manipulated.
His lawyer, former U.S. attorney Thomas Puccio, said he would appeal the conviction. Meanwhile, Mulheren remained free on bail.