Once convicted of criminal racketeering, defendants may be required to forfeit all of their interests in the enterprise that employed them.

Princeton/Newport Partners L.P., the New Jersey investment partnership whose top officers were charged in August with criminal racketeering, will liquidate because of the charges, lawyers for two of the defendants said yesterday.

Stock prices of the industry's biggest names, including PartyGaming and SportingBet, plummeted on fears that companies could face charges of criminal racketeering.

They are charged with turning the Wedtech Corporation into a center of criminal racketeering that paid millions of dollars in bribes to win military contracts.

Lawyers for Mr. Milken spent yesterday preparing for the possibility that their client could be indicted next week, anticipating charges of criminal racketeering and securities fraud.

The sixth count is based on trading between Drexel and Princeton/Newport Partners, the small New Jersey brokerage whose partners have been indicted for criminal racketeering.

Once convicted of criminal racketeering, defendants can be required to forfeit all interests in, and money earned through, the racketeering enterprise.

Securities Fraud Involved The letter from prosecutors states that a Federal grand jury has been investigating charges of securities fraud, mail and wire fraud, and criminal racketeering.

In 1941, he won a Pulitzer Prize for exposing criminal racketeering in labor unions.