Hutton Ex-President Censured by NYSE Over Check-Kiting

NEW YORK —  The chairman of Prudential-Bache Securities Inc. has agreed to a censure by the New York Stock Exchange for failing to oversee E. F. Hutton & Co. properly when he was president of that firm during an overdrafting scheme, sources familiar with the settlement said today.

The sources said the exchange determined George L. Ball was not aware of the scheme, which was conducted in the 1980s and became a key element in Hutton’s subsequent demise. But the exchange felt Ball still bore some responsibility. Hutton’s former chief financial officer Thomas Lynch also will be censured, and Hutton must pay a $400,000 fine to the exchange, the sources said. Because Hutton was acquired by Shearson Lehman Brothers Inc. late last year, Shearson will pay the fine.