Wall Street got a measure of revenge on July 10, when the U. S. Court of Appeals in New York reversed the conviction of arbitrageur John Mulheren. Last fall, he was convicted of securities and wire fraud, largely on the testimony of confessed stock swindler Ivan Boesky. Mulheren was sentenced to one year in jail and ordered to pay $1.7 million in fines.
In reversing the convictions, the appeals court slammed the government's evidence. It also raised serious doubts about the prosecution's theory that Mulheren allegedly helped Boesky manipulate the price of Gulf & Western stock. The reversal is another setback for former U. S. Attorney Rudolph Giuliani, who in recent weeks has watched the appeals courts overturn many of his prosecutorial victories.