On June 6, 1984 the Associated Press (AP) released a story entitled
Taxi Driver Charged with Inside Trading, Swiss Bank Account.
The story was written by AP reporter, Paul Moses. The details of the
story are as follows:
Stephen L. Wallis and Sharon Willey, both 30 years old, were were
on May 19, 1984. In June, a grand jury indicted Wallis and Willey on
20 counts of conspiracy, securities fraud and mail fraud. Each count
carried a possible sentence of five years jail time. In particular
the grand jury indicted the pair for:
(1) trading stock based on insider information
(2) keeping the proceeds in a Swiss bank account
(3) failing to report the income on their tax returns.
Wallis was a taxi driver in New York City, who recruited a passenger
with knowledge of impending corporate takeovers to provide inside
information. Wallis allegedly paid the passenger, 23-year old Kenneth
Petricig, 23, for repeated access to inside information. Petricig was
a proofreader at the New York law firm of Skadden, Arps, Slate,
Meagher & Flom, a specialist in corporate takeovers. Wallis met with
Petricig in his cab and in movie theaters, according to the charges
filed, and paid him amounts from $100 to $5,000 in exchange for
information about upcoming corporate deals.
The charges alleged that Petricig provided information on deals
involving Mesa Petroleum Co.'s bid for the General American Oil Co. of
Texas; Coastal Corp.'s bid for Texas Gas Resources Corp. and Houston
Natural Gas Corp.; Calvin Klein's bid for Puritan Fashions Corp.; and
leveraged buyouts involving Morgan Stanley & Co. and Southwest Forest
Petricig had already pled guilty to insider trading charges at the
time of Wallis and Willeys arrest as the pair were preparing to leave
the country and head to Switzerland.
Assistant U.S. Attorney Andrew J. Levander announced the charges. A
separate set of charges was being prepared by the SEC in a suit
against Wallis, Willey and others.
Ronald W. Meister, attorney for Wallis, had no comment on the charges.
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