Lehman Is Subject of Federal Criminal Probes
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Saturday, October 18, 2008
Lehman Brothers, the giant investment bank that last month filed the largest bankruptcy in history, is the subject of at least three federal criminal investigations that have subpoenaed a dozen top executives, according to a person familiar with the matter.
Richard S. Fuld Jr., the company's former chairman and chief executive, and Erin Callan, the former chief financial officer, are among the subpoenaed executives, according to the person, who spoke on condition of anonymity because of the sensitivity of the case.
The exact focus of the probes, conducted by U.S. attorneys in Manhattan, Brooklyn and New Jersey, is unclear. But the investigations, which are in the preliminary stage, are expected to be wide-ranging, the person said.
Spokesmen for the prosecutors and Lehman Brothers declined to comment; Callan and a lawyer for Fuld did not return phone calls.
Lehman Brothers is among the largest casualties of the global financial crisis and its Sept. 15 collapse had reverberations in markets around the world.
Lehman is one of at least 26 firms being examined by federal authorities investigating potential fraud and wrongdoing in connection with the worst financial crisis since the 1929 stock market crash.
