Prison term officially over for Milken

March 03, 1993|By Los Angeles Daily News

LOS ANGELES -- Michael Milken's two-year prison term officially ended yesterday when the former junk-bond financier checked out of the Hollywood halfway house that had supervised his return to society since January.

Milken now faces three years of community service at 1,800 hours per year -- roughly 35 hours a week -- but a formal plan has yet to be submitted by Milken to U.S. District Court Judge Kimba Wood.

The fallen junk bond financier faces both personal and legal limits on his business activities.

But it appears that won't deter Milken from continuing to praise the value of junk bonds.

Milken faces Securities and Exchange Commission restrictions on giving financial advice, but he already has co-authored a booklet on the value of junk bonds that associates say is due to be updated. He also plans to write a book in which he will discuss his views on finance.

"Whether he talks about the bond or the credit or the individual markets, he'll give his opinion about it," said Lorraine Spurge, longtime associate and Milken spokeswoman.

Milken also has an estimated $500 million, which authorities believe is in trusts and profit sharing plans. He can invest that as he pleases. But friends and associates say Milken first must deal with his prostate cancer and fulfill community service requirements under the terms of his sentence before he can consider any future plans.

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