Subject: Dennis T. Palmeri

Subject of Interest

Dennis T. Palmeri was a former top Shearson Lehman Hutton Inc. executive, who plead guilty to criminal charges in a broad government investigation of the stock-loan industry that also involves other brokerages. Palmeri was in charge of stock loans. The case was said to be derived from information from jailed speculator Ivan F. Boesky, a major source of evidence for Wall Street securities investigations since he was ensnared in an insider trading probe in 1986. Palmeri received illegal kickbacks while head of the stock-loan operation. Palmeri began working at Shearson in 1979. He resigned June 28, 1989. He had supervised a department that specializes in lending blocks of stock mostly to large institutional investors and speculators.

Guilty Plea in Stock Case is Expected