June 5, 1989 |
Alvin DeShano, the accounting director for the Carl's Jr. hamburger chain, was acquitted today of a criminal charge of insider trading. "I'm obviously very happy," DeShano said after U.S. District Judge A. Wallace Tashima announced the verdict. "I screwed up and sold at the wrong time--but I definitely did not intend" to violate securities laws. "I think they saw I was an honorable man." DeShano, 55, of Orange was accused of using confidential company information to avoid a $7,107 loss on stock of Anaheim-based Carl Karcher Enterprises, which runs the Carl's Jr. fast-food chains.
June 1, 1989 |
Testimony in the insider trading trial of Alvin DeShano came to a close Wednesday as jurors were asked to decide if the Carl's Jr. accountant intended to use confidential company information to avoid a stock market loss of $7,107 five years ago. "This is a very simple case," Assistant U.S. Atty. James Sanders said in his final argument. "Al DeShano wanted to sell his stock, save as much money as possible, and put it in his pocket. And that's exactly what he did." But defense lawyer David Wiechert told jurors the case is "as complicated as the human mind.
May 27, 1989 |
Alvin DeShano, the Carl's Jr. accountant accused of illegal insider trading, testified Friday that he sold company stock because he wanted to diversify his investments--not because he believed the price was about to plummet. DeShano, 54, disposed of his stock Oct. 15, 1984, the first trading day after executives at Carl Karcher Enterprises in Anaheim received a preliminary internal report showing a big earnings decline in the previous 4 weeks. By selling 1,725 shares of Karcher stock before news of the lower earnings was announced publicly and the stock price fell, DeShano avoided $7,107 in potential stock market losses, the government alleges.
May 26, 1989 |
Alvin DeShano, the Carl Karcher Enterprises accountant accused of illegal insider trading, discussed selling his Karcher stock before he had any knowledge of an impending dramatic drop in the company's profits, Karcher's treasurer testified Thursday. Elaine Falbe, vice president and treasurer of the Anaheim fast-food chain, told a federal jury in Los Angeles that DeShano asked controller George Clower in late September or early October of 1984 whether he could sell the shares. Federal prosecutors contend that DeShano sold all of his Karcher stock on Monday, Oct. 15, 1984, after receiving a preliminary, internal report on the previous Friday showing that the company's earnings for the 4-week period that ended Oct. 5 would be as much as $900,000 below projections.
May 25, 1989 |
A Carl Karcher Enterprises executive whose subordinate is on trial for illegal insider trading testified Wednesday that he too sold Karcher stock in the weeks before public announcement of a dramatic decline in company earnings. George Clower, controller of the Anaheim fast-food chain and the immediate supervisor of company accountant Alvin DeShano, acknowledged that he sold blocks of his own Karcher stock on five occasions in the fall of 1984. Clower's testimony came during the 2nd day of DeShano's criminal trial in federal court in Los Angeles.
May 24, 1989 |
The insider trading trial of Carl Karcher Enterprises accountant Alvin DeShano opened Tuesday with DeShano's lawyer portraying the defendant as an unsophisticated investor who never intended to cheat anyone and who sold his company stock at the wrong time. DeShano is accused of avoiding $7,107 in potential losses in October, 1984, by relying on confidential information to sell his stock in Karcher Enterprises. But his attorney contends that he didn't have inside information. "The (Karcher)