Facebook Twitter

MISTRIAL DECLARED IN STOCK-TRADER TRIAL

SHARE MISTRIAL DECLARED IN STOCK-TRADER TRIAL

A federal judge declared a mistrial Thursday on 26 felony counts against John A. Mulheren Jr., the flamboyant stock trader already convicted of illegal dealings with inside trader Ivan F. Boesky.

Jurors had found Mulheren guilty of four counts of conspiracy and stock manipulation but said they were deadlocked on remaining charges."I am now persuaded that unanimity is beyond the reach of this jury on the remaining counts," U.S. District Judge Miriam Goldman Cedarbaum said on the panel's ninth day of deliberations.

Mulheren, 41, was a successful trader in stocks of companies targeted for takeover before he was implicated in 1988 in the government's fraud investigation by Boesky, a former friend and associate.

His trial was marked by Boesky's first public testimony under his settlement with investigators. Boesky spent two years in prison and paid $100 million in penalties to settle insider trading charges.

It was the first trial conviction of anyone based on information supplied by Boesky, who agreed in 1986 to cooperate with prosecutors in settling the biggest case of illegal insider trading ever.

Prosecutors said they could not immediately comment on whether they planned to retry Mulheren on the outstanding counts of securities fraud, mail fraud and record-keeping violations.

Cedarbaum scheduled an Oct. 5 sentencing for the four counts on which Mulheren was convicted. He faces up to five years in prison and a $250,000 fine on each count.