101 F.3d 107 (2nd Cir. 1996), 95-6217, S.E.C. v. Drexel Burnham Lambert Inc.

Docket Nº:95-6217.
Citation:101 F.3d 107
Party Name:SECURITIES AND EXCHANGE COMMISSION, Plaintiff-Appellee, v. DREXEL BURNHAM LAMBERT INCORPORATED; Drexel Burnham Lambert Group Inc.; Michael R. Milken; Lowell J. Milken; Cary J. Maultasch; Pamela R. Monzert; Steven N. Posner; Pennsylvania Engineering Corporation, Defendants, Victor Posner, Defendant-Appellant.
Case Date:March 08, 1996
Court:United States Courts of Appeals, Court of Appeals for the Second Circuit
 
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Page 107

101 F.3d 107 (2nd Cir. 1996)

SECURITIES AND EXCHANGE COMMISSION, Plaintiff-Appellee,

v.

DREXEL BURNHAM LAMBERT INCORPORATED; Drexel Burnham Lambert Group Inc.; Michael R. Milken; Lowell J. Milken; Cary J. Maultasch; Pamela R. Monzert; Steven N. Posner; Pennsylvania Engineering Corporation, Defendants,

Victor Posner, Defendant-Appellant.

No. 95-6217.

United States Court of Appeals, Second Circuit

March 8, 1996

Editorial Note:

This opinion appears in the Federal reporter in a table titled "Table of Decisions Without Reported Opinions". (See FI CTA2 s 0.23 regarding use of unpublished opinions)

S.D.N.Y.

AFFIRMED.

APPEARING FOR APPELLANT: Jay P. Lefkowitz, Kirkland & Ellis, Washington, DC.

APPEARING FOR APPELLEE: Leslie E. Smith, Securities and Exchange Commission, Washington, DC.

PRESENT: HON. ROGER J. MINER, HON. DENNIS G. JACOBS, HON. JOSÉ A. CABRANES, Circuit Judges.

UPON CONSIDERATION of this appeal from an order of the United States District Court for the Southern District of New York, it is hereby

ORDERED, ADJUDGED, AND DECREED that the order be and it hereby is AFFIRMED.

This cause came on to be heard on the transcript of record and was argued by counsel.

Defendant-appellant Victor Posner appeals from an order entered on June 30, 1995 in the United States District Court for the Southern District of New York (Pollack, J.). The district court ordered that, as to all proposed transactions involving Salem Corporation ("Salem") that require shareholder approval, the trustee holding Posner's shares is to vote those shares proportionately without any interference from Posner.

In 1988, plaintiff-appellee Securities and Exchange Commission ("SEC") brought a civil enforcement action against Posner and several others, alleging that they had violated the federal securities laws. Specifically, the SEC charged that Posner had participated in a scheme to fraudulently purchase a controlling stock interest in Fischbach Corporation ("Fischbach").

Following a bench trial, the district court found that Posner had violated various provisions of the securities laws. SEC v. Drexel Burnham Lambert Inc., 837 F.Supp. 587 (S.D.N.Y.1993). The court found that Posner had committed these violations with a "high degree of scienter," id. at 611, and that Posner in the past had "repeatedly abused [his] positions in public...

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