I'd forgotten about Jett. Obviously, what Welch failed to say was that KP wouldn't question his methods for two years because of fears of being tagged as racist. Also, the fact that criminal prosecution was declined, in so obvious a case, is why many more later on turned to illegal financial crimes. Even if you got caught, there was no risk. Do you know if the ever recovered the $$$..or did JJ manage tospend it all ?
Particularly because at just that period of time there was a "racial discrimination" lawsuit filed by Buddy Fletcher against KP in June 1991. It is also not a stretch to assume that it was a consideration behind hiring Jett in July 1991 - also a Harvard grad, with similar "accomplishments" and CV profile - to help fight the charge, which they did successfully in court, but eventually paid even greater price for it.
Do you know if they ever recovered the $$$..or did JJ manage to spend it all ?
No, they didn't.
Jett never appealed the March 05, 2004 SEC decision which ordered a return of $8.21M in fraudulently obtained bonuses and a fine of $200K. He was also barred from the securities industry and any professional association with a securities broker or dealer.
In 2006, when the SEC started an enforcement action in the US District Court, Jett filed a court complaint that he never received 2004 decision notice from the SEC, and because he didn't know of the 2004 decision he didn't file an appeal.
The Court rejected his explanation when the 2004 article was discovered in which he said that he he didn't care about SEC decision because it was still legal for him to trade securities outside of the US. (OPENERS: REFRESH BUTTON; Repentant? No. Bitter? Less. - NYT, by Robert Johnson, 2004 May 02)
"So the Securities and Exchange Commission won't let me work on Wall Street," said Mr. Jett, 47, a graduate of the Massachusetts Institute of Technology and Harvard Business School. "Who cares? I'm still legal on the exchanges in Toronto, London and the Cayman Islands." ..... < snip > ..... Still haunted by legal fees from that battle, Mr. Jett says he is dubious about chasing financial success too hard these days. "I could earn a lot of money, but most of it would be turned over to attorneys," he said. "So I structure employment contracts in ways that allow me to have a roof over my head and pay child support."
Orlando Joseph Jett was banned from Wall Street trading in the wake of a spectacular bond-trading fraud that brought down the prestigious brokerage house Kidder, Peabody a decade ago. But that is not stopping him from keeping busy working for investment clients.
On September 11 2007, the Court issued the disgorgement order against Jett.
His third book was titled "The Art of War: New Strategies for Black America" (published by Jett's company The Cambridge Matrix).
At the time he said he was charging $4,000-$8,000 on lecture circuits for speaking to accounting groups about corporate fraud (same path as Nick Leeson, Barry Minkow, Kevin Mitnick et al).
His Princeton, NJ firm, Jett Capital Management LLC (http://jettcapital.com/inManAccts.htm) seems more like a shell company / "presence" sign on the web than an actual actively managed financial company, which touts his "glory" and his appearances on the old TV shows, many of which no longer exist.
The latest on his SEC and custody battles with his longtime live-in ex-companion, "lap dancer" / Merrill Lynch Global Investment Director Melissa Leonardo, is in this article from NYP (article is incorrect about Jett having been cleared of administrative charges and fine, apparently confusing it with charges not filed in the criminal investigation):
Ex-Street big snared in domestic, SEC battles - NYP, by Paul Tharp, 2010 February 25