E.F. Hutton's Simmering Scandal

More and more questions are raised about the investment firm

Try as it may, E.F. Hutton, the fifth-largest U.S. brokerage firm, cannot escape an ongoing scandal. In fact, the company seems to become enmeshed ever deeper in suspicions and allegations. In May, Hutton was fined $2 million plus legal costs after pleading guilty to 2,000 counts of mail and wire fraud involving an elaborate check-kiting operation. That admission, though, seems to have been just the beginning of the firm's problems. Last week Hutton divulged that it had failed to submit 18 documents subpoenaed by the Justice Department during a three-year investigation of its practices. Former Hutton President George L. Ball looked...

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