‘WS Journal’ man on insider-trading count

Press, 19 May 1984, Page 21

‘WS Journal’ man on insider-trading count

NZPA-AP New York The Securities and Exchange Commission filed suit yesterday charging that a former “Wall Street Journal" reporter leaked share trading tips and agreed to share illegal stock profits of SUS9OO,OOO (SNZI.3BM).

The defendants include R. Foster Winans, who had been one of the writers of the newspaper’s “Heard on the Street” investment column, and Peter Brant, a former broker for Kidder Peabody and Company.

Also charged in the suit, filed in a United States district court, were David Carpenter, who, the SEC said, lived with Winans, and two investors, Kenneth Felis and David Clark.

According to the suit, Winans violated his duty to the “Journal" by leaking advance information about his column. The SEC suit asserted the defendants took advantage of the impact that the “Heard on the Street" column had on the value of publicly traded

stocks The SEC charged that Winans agreed to split stock profits with Brant, who allegedly received the inside information. The suit describes one alleged transaction in which Brant delivered a SUSIS,OOO ($NZ23.100) cheque that was deposited into an account held jointly by Winans and Carpenter. 'The suit asks for a court order barring the defendants from securities fraud, and that they give up any illegal profits.