NYU Trustee Steinhardt’s
Historic Price-Fixing Case Connection
Coincidentally, in the year
before Clinton defeated Republican President Bush I in the 1992 presidential
election, the Republican Bush Administration’s Securities and Exchange
Commission [SEC] apparently began looking into allegations that Steinhardt’s
investment firm and billionaire speculator-turned “philanthropist” George
Soros’ investment firm were involved in the white-collar crime of price-fixing.
As Steinhardt noted in his 2001 No Bull book:
“…In June 1991, the
government began investigating price fixing or collusion at auctions. It was
alleged that Salomon and three key clients—Tiger Management (run by Julian
Robertson), Quantum Fund (run by George Soros) and the Steinhardt funds—had
colluded to manipulate the market in two-year Treasury notes in the April and
May auctions…In time, the SEC issued subpoenas to key people at…Steinhardt.
Eventually a large group of small investors filed a number of class-action
civil suits…against…Steinhardt. They alleged that…we had colluded…causing them
to lose millions…We ended up paying the SEC and Justice Department civil fines.
All in all, we at Steinhardt paid fines and fees totaling more than $70
million…I paid 75 percent of the fines…”
(end of part 9)
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