Is Stock Parking Like Jaywalking?
A JUDGE in Washington is expected to decide shortly whether Marc Belzberg and a company he controls, the First Cities Financial Corporation, failed illegally to disclose ownership of stock in a company they sought to take over. Federal prosecutors, in a different case, are investigating, and may soon make public, charges that employees at Drexel Burnham Lambert Inc. were involved in efforts to conceal who owned certain stocks. And in yet another case, lawyers from the United States Attorney’s office in Manhattan have been reported to be examining whether John A. Mulheren Jr., the senior partner at Jamie Securities, was involved with a company controlled by Ivan F. Boesky in a scheme to hide stock ownership involving Mr. Boesky’s head trader, Michael Davidoff. More commonly known as ”stock parking,” the concealment of the real owner of a stock was, until recent times, a practiced art on Wall Street that went virtually unnoticed by regulatory authorities. But within the last two years,
