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David Solomon
Convicted Investment Fund Manager; Drexel Burnham Lambert Co-Conspirator
Investment Fund Manager; Securities Fraud Conspirator
Overview
David Solomon (not to be confused with current Goldman Sachs CEO David Solomon) was an investment fund manager whose Solomon Asset Management fund had extensive illegal dealings with Michael Milken's high-yield bond department at Drexel Burnham Lambert during the 1980s. Solomon's fund served as a vehicle for illegal stock parking, insider trading, and the generation of phony tax losses in coordination with Milken. Two of Michael Milken's six felony guilty plea counts in April 1990 directly involved illegal transactions between Milken and Solomon's fund. Solomon was convicted of securities fraud for his role in the insider trading conspiracy and for facilitating illegal arrangements that helped Milken and Drexel hide the true nature of their transactions. His fund's dealings with Drexel exemplified how Milken used a network of captive investors to manipulate markets and evade regulatory scrutiny.
Key Affiliations
Controversies & Concerns
Two of Michael Milken's six felony guilty plea counts directly involved illegal transactions with Solomon's fund
Fund had illegal arrangements with Drexel including insider trading and generation of phony tax losses
Convicted of securities fraud for conspiring with Milken and Drexel's high-yield bond department
Solomon Asset Management served as a vehicle for stock parking schemes to hide true ownership of securities
Coordinated with Milken to generate artificial tax losses for fund investors through sham transactions
Related Investigations (2)
Criminal Charges & Violations
2 documented violations
15 U.S.C. § 78j(b), SEC Rule 10b-5Securities Fraud - participating in insider trading and market manipulation with Drexel Burnham Lambert(Federal)
26 U.S.C. § 7206Tax Fraud - generating phony tax losses through sham transactions with Milken(Federal)
Known Associates & Connections
Michael Milken
Junk bond king whose guilty plea included counts involving illegal transactions with Solomon's fund
Drexel Burnham Lambert
Investment bank whose high-yield bond department facilitated illegal transactions with Solomon's fund
Sources & Documentation
2 documented sources from official records, investigations, and reports
Personal Information
- Born
- Unknown
- Birthplace
- United States
Education
Key Timeline
1983-1988
Solomon Asset Management enters into extensive illegal arrangements with Michael Milken's high-yield bond department at Drexel
1988-1989
Federal investigation uncovers illegal transactions between Solomon fund and Drexel
April 24, 1990
Two of Michael Milken's six guilty plea counts specifically reference illegal transactions with Solomon's fund
1990
Convicted of securities fraud for role in the Drexel insider trading conspiracy