Investigations: Who Knew What?

Who Knew What?

When E.F. Hutton pleaded guilty last month to 2,000 counts of wire and mail fraud involving kited checks, its top officers denied any knowledge of the wrongdoing. A House Judiciary subcommittee last week produced documents that raised questions about Hutton's claim. Among them was a Hutton memo, apparently addressed to Hutton President George L. Ball, describing "disproportionately high interest . . . from aggressive overdrafting with several branches in the Washington, D.C., area."

Ball, now head of Prudential-Bache Securities, said he received no such memo, only a routine briefing paper in November 1981 that made no reference to any overdraft scheme....

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