Word: brantes
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Dates: during 1980-1989
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Last week the SEC filed a 55-page civil complaint in New York federal court charging that Winans, Brant and three others had engaged in a scheme of "fraud and deceit" by trading on the basis of inside information not available to the public. If found guilty of the SEC charges, they will be forced to pay back the money they made, but they will not face jail sentences. A separate criminal investigation against them is being conducted, however, and that could lead to prison terms...
...charges that Winans' tips on Journal stories led to 46 instances of insider trading in the stock of 27 companies. Also charged in the suit, which is backed up by more than 200 pages of documents, are Kenneth Felis, a college friend of Brant's and another former Kidder Peabody broker, who is said to have gained $302,000 from the trades, and David W.C. Clark, 34, a New York City lawyer and country club crony of Brant's. Clark is believed to have made...
While Winans had earlier contended that he never compromised the Journal's news columns by deliberately planting stories, he admitted to investigators that he twice wrote favorable columns at Brant's request on companies in which Brant and his clients held stock: Chicago Milwaukee, a railroad holding company, and Digital Switch, a telecommunications manufacturer. Said Winans, who was fired from the Journal after the SEC began its investigation in March: "There is much in my conduct during the last months at the Journal which was wrong ... I stand in judgment of myself as having violated fundamental tenets...
Most of the SEC's version of events was, in fact, supplied by Winans and Carpenter. Brant denied to the SEC that he ever knew in advance of any of Winans' articles, and both Brant and Felis refused to cooperate with the SEC investigation...
...scheme allegedly worked out between Brant and Winans in October had at first gone smoothly. The journalist would call the broker from a pay phone near the Journal's newsroom in lower Manhattan to alert him to upcoming stories. For instance, on Oct. 26 Winans told Brant about a negative story that was due to appear on Commodore International, the home-computer maker. By selling the stock short, Clark made a profit of $134,671.79. Not all the trades were successful, though. When a favorable story on oil service stocks, including Schlumberger, failed to move the stock higher, Felis...