After months of legal wrangling, a federal judge in New York on Aug. 5 agreed to reduce Michael Milken's jail time by 12 months. Barring a sudden change for the worse in his conduct, the dethroned junk-bond king will be freed from a federal penitentiary in Northern California on Mar. 3, 1993, when he would begin three years of full-time community service.
In her 14-page opinion, U.S. District Court Judge Kimba Wood cited Milken's "substantial" cooperation with prosecutors--especially his help in winning a conviction of Alan Rosenthal, a former colleague at Drexel Burnham Lambert. The judge also noted Milken's cooperation with the Securities & Exchange Commission--despite an unusual letter from the agency blasting Milken's testimony as yielding "few concrete results."
Other issues that swayed the judge include Milken's tutoring of fellow inmates, his role in settling scores of private lawsuits and claims against him and other former Drexel employees, and illness in his immediate family.