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David Solomon
Former Fund Manager, Solomon Asset Management
Fund manager whose firm had illegal arrangements with Michael Milken's department at Drexel Burnham Lambert; two of Milken's six felony counts involved transactions with Solomon's fund
Overview
David Solomon was the manager of Solomon Asset Management, a fund that maintained illegal arrangements with Michael Milken's high-yield bond department at Drexel Burnham Lambert. These arrangements included insider trading and the creation of phony tax losses. The fund's account at Drexel was managed by Terren Peizer, one of Milken's protégés. Two of the six felony counts to which Milken pled guilty in April 1990 directly involved illegal transactions with Solomon's fund, specifically related to tax evasion schemes. Solomon was convicted of securities fraud. His case demonstrated that Milken's criminal network extended beyond Wall Street firms to the money managers who were supposed to be independent investors.
Key Affiliations
Controversies & Concerns
Illegal arrangement with Drexel Burnham Lambert involving insider trading and phony tax losses
Two of Michael Milken's six felony guilty plea counts involved transactions with Solomon's fund
Convicted of securities fraud
Related Investigations (1)
Criminal Charges & Violations
1 documented violations
15 U.S.C. § 78j(b)Securities fraud(Financial Crimes)
Known Associates & Connections
Michael Milken
Two of Milken's guilty plea counts involved Solomon's fund
Terren Peizer
Drexel salesman who managed Solomon's account; later testified against Milken
Sources & Documentation
2 documented sources from official records, investigations, and reports
Personal Information
- Born
- Unknown
- Birthplace
- Unknown
Education
- •Unknown
Key Timeline
1985-1989
Solomon Asset Management maintains illegal arrangement with Milken's department at Drexel
1988
Terren Peizer begins cooperating with prosecutors, providing evidence about Solomon arrangements
1990
Two of Milken's six felony counts involve transactions with Solomon's fund
1990
Convicted of securities fraud