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Terren Peizer
Former Drexel Burnham Lambert Junk Bond Salesman; Former CEO, Ontrak Inc.
Milken protégé who received immunity for testimony against Milken in 1990, then was himself convicted of insider trading in 2024 and pardoned by Trump in 2026
Overview
Terren Scott Peizer was hired by Michael Milken at Drexel Burnham Lambert in 1985 as a junk bond salesman. He managed the Drexel account of David Solomon's fund management firm, Solomon Asset Management, which had an illegal arrangement with Drexel that included insider trading and phony tax losses. He worked directly under Milken, sometimes pretending to be him on the phone and calling him "Dad." Beginning in 1988, Peizer provided material evidence to prosecutors against Milken and Solomon. At Milken's 1990 pre-sentencing hearing, Peizer testified against his former boss in exchange for complete immunity from both criminal prosecution and SEC sanctions. In a dark irony, Peizer himself was convicted in June 2024 of insider trading and securities fraud for a separate $12.5 million scheme at healthcare company Ontrak Inc. He was sentenced to 42 months in prison and fined $5.25 million. On January 16, 2026, President Donald Trump granted Peizer a full and unconditional pardon.
Key Affiliations
Controversies & Concerns
Managed Drexel account with illegal arrangement including insider trading and phony tax losses with Solomon Asset Management
Received complete immunity from criminal prosecution and SEC sanctions in exchange for testimony against Michael Milken (1988-1990)
Founded and promoted Hythiam Inc., which marketed an unproven addiction treatment called Prometa that proved completely ineffective; stock dropped 99.7%
Indicted March 2023 for insider trading at Ontrak Inc. after FBI investigation; accused of selling $20 million in stock while possessing material nonpublic information
Convicted June 2024 of 3 counts of insider trading and securities fraud; sentenced to 42 months in prison
Pardoned by President Trump January 16, 2026
Related Investigations (1)
Criminal Charges & Violations
2 documented violations
15 U.S.C. § 78j(b)Securities fraud (Ontrak Inc.)(Financial Crimes)
15 U.S.C. § 78ffInsider trading (2 counts, Ontrak Inc.)(Financial Crimes)
Known Associates & Connections
Michael Milken
Boss at Drexel; mentor; Peizer testified against him under immunity
David Solomon
Fund manager whose account Peizer managed; illegal arrangement with Drexel
Ivan Boesky
Part of the broader insider trading conspiracy
Sources & Documentation
4 documented sources from official records, investigations, and reports
Personal Information
- Born
- July 31, 1959
- Birthplace
- Beachwood, Ohio, USA
- Also Known As
- Milken's Protégé
Education
- •Wharton School of the University of Pennsylvania (B.S., Economics, 1982)
Key Timeline
1959
Born in Beachwood, Ohio
1982
Graduates from Wharton School, University of Pennsylvania
1983
Brief stints at Goldman Sachs and First Boston
1985
Hired by Michael Milken at Drexel Burnham Lambert as junk bond salesman
1988
Begins providing material evidence to prosecutors against Milken and Solomon
1988-12
Receives immunity deal as fourth Drexel employee to cooperate
1990
Testifies against Milken at pre-sentencing hearing under immunity
2003
Founds Catasys Inc. (later Ontrak), a healthcare company
2023-03-01
Indicted for insider trading and securities fraud at Ontrak after FBI investigation
2024-06-21
Convicted by federal jury of 3 counts of insider trading and securities fraud
2025-06-23
Sentenced to 42 months in prison, fined $5.25 million, ordered to forfeit $12.7 million
2026-01-16
Granted full and unconditional pardon by President Donald Trump