SEC Turning Over Grand Jury Testimony in Bear Stearns-Baron Case

In an unusual legal move, the Securities and Exchange Commission has agreed to turn over grand jury testimony from a criminal investigation of A.R. Baron & Co. and Bear Stearns & Co. (BSC Quote) to a former top Bear Stearns executive now facing securities-fraud charges in the case.

The SEC is sharing the highly secretive testimony with Richard Harriton, who served as president of Bear Stearns Securities when it handled clearing operations for the now-defunct micro-cap broker Baron.

That could give Harriton an edge in any possible future criminal prosecution, according to legal experts. It also could mean details of the Baron-Bear Stearns clearing deals gathered by the grand jury -- normally the most guarded of information in a criminal prosecution -- eventually could be made public if Harriton's civil case goes to trial and they become part of the proceeding, says Judith Starr, SEC assistant chief litigation counsel. ...