3: Paragraph 56 Some months later we started to realize why the
Legal Dept. had been so hot about IDP when it hit the papers that Hutton
had been involved in the money-laundering scheme the media called "the
pizza connection." IDP kept talking to us for months about doing a
deal, but nothing ever came of it.
3: Paragraph 57 Then on 2 May 1985 Pierce entered Hutton & Co.'s
guilty plea to 2000 counts of federal mail and wire fraud in what came
to be referred to as "the check-kiting." Too much has been written
about that for me to have to describe it here; suffice it to say that
Hutton had for several years taken advantage of the float on checking
accounts by drawing checks to customers on accounts in banks at the
other end of the country from where the customers were and then
depositing the money to cover the checks later. Many of the AEs were
shaken that Hutton had been doing anything so blatantly against both the
law and the customers' interests, but I was surprised they were
surprised, because it was the same thing Hutton was still doing through
the Trust Company, and it was in keeping with everything I'd seen of the
way Hutton was run.
3: Paragraph 58 Hutton was fined $2 million and agreed to pay up to
$8 million in restitution to the banks, but Abbes and the other Hutton
higher-ups I dealt with laughed that off as "chump change" compared to
the amount Hutton had gained from it.
Pages:
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84