Michael Milken’s money at his family office, Silver Rock Financial LLC, have decided to start a hedge fund, the Wall Street Journal reported, Citing people familiar with the issue and securities filings .
Milken, who in the 1980s pled guilty to junk-bonds securities fraud in 1990 at Drexel Burnham Lambert, has been barred from brokerage and financial advisory activities.
Milken will seed the new hedge fund with several hundred million dollars, according WSJ, but will not be involved in the investment activities. The rest of the money will come from outside investors, which are already being courted, sources said.
“Mike has never had any interest in being in the money management business and has no interest in being in that business now or ever, ” a spokesman for Milken told Wall Street Journal. However, another source assured Milken is “not a passive client.”