R. Foster Winans
Encyclopedia
R. Foster Winans is a former columnist for The Wall Street Journal
The Wall Street Journal
The Wall Street Journal is an American English-language international daily newspaper. It is published in New York City by Dow Jones & Company, a division of News Corporation, along with the Asian and European editions of the Journal....

who co-wrote the "Heard on the Street Column" from 1982 to 1984 and was convicted of insider trading
Insider trading
Insider trading is the trading of a corporation's stock or other securities by individuals with potential access to non-public information about the company...

 and mail fraud. He was indicted by then-U.S. Attorney
United States Attorney
United States Attorneys represent the United States federal government in United States district court and United States court of appeals. There are 93 U.S. Attorneys stationed throughout the United States, Puerto Rico, the U.S. Virgin Islands, Guam, and the Northern Mariana Islands...

 Rudolph Giuliani and convicted in 1985 of violating Federal law by leaking advance word of the contents of his columns to a stockbroker, Peter N. Brant, at Kidder, Peabody & Co.
Kidder, Peabody & Co.
Kidder, Peabody & Co. was a U.S.-based securities firm, established in Massachusetts in 1865. Its operations included investment banking, brokerage, and trading....

, an old-line brokerage firm. Brant was decades later labeled a recidivist by the U.S. Securities and Exchange Commission. Winans' conviction was affirmed by the U.S. Supreme Court
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...

 in 1987 as Carpenter v. United States by a rare 4–4 deadlocked vote. He served nine months in federal prison.

Conviction

Winans admitted his participation in the scheme and to earning $31,000 from it, but pleaded not guilty, arguing that his behavior was unethical but not criminal. Winans was found guilty and sentenced to 18 months in prison, later reduced to a year and a day. In a 2006 speech on the importance of ethical journalism as a necessary aid to help the SEC combat stock market fraud, Christopher Cox, chairman of the SEC, stated that "Winans, who was found guilty of 59 separate counts of securities fraud, is by no means the only journalist who has stood accused of law breaking, and who brought disgrace to (journalism)."

Both the securities industry and the First Amendment
First Amendment to the United States Constitution
The First Amendment to the United States Constitution is part of the Bill of Rights. The amendment prohibits the making of any law respecting an establishment of religion, impeding the free exercise of religion, abridging the freedom of speech, infringing on the freedom of the press, interfering...

 lobby criticized the prosecution as over-stepping the bounds of the securities laws, and filed amicus briefs during the appeals process. Winans's case included two co-defendants and reached the U.S. Supreme Court
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...

 in 1987 as Carpenter v. United States, where the conviction was affirmed by a rare 4-4 deadlock. The missing member was due to the retirement of Justice Lewis F. Powell, Jr.
Lewis Franklin Powell, Jr.
Lewis Franklin Powell, Jr. was an Associate Justice of the Supreme Court of the United States. He developed a reputation as a judicial moderate, and was known as a master of compromise and consensus-building. He was also widely well regarded by contemporaries due to his personal good manners and...

. The case is still taught in law and journalism schools http://biotech.law.lsu.edu/cases/FCA/Carpenter_v_US.htm. Winans's book about the case, Trading Secrets, was published in 1986 by St. Martin's Press
St. Martin's Press
St. Martin's Press is a book publisher headquartered in the Flatiron Building in New York City. Currently, St. Martin's Press is one of the United States' largest publishers, bringing to the public some 700 titles a year under eight imprints, which include St. Martin's Press , St...

 in the U.S. and under the title Wall Street in France. It was excerpted in Esquire
Esquire (magazine)
Esquire is a men's magazine, published in the U.S. by the Hearst Corporation. Founded in 1932, it flourished during the Great Depression under the guidance of founder and editor Arnold Gingrich.-History:...

magazine and was a Book-of-the-Month Club Selection.

Later life

Winans has ghosted
Ghostwriter
A ghostwriter is a professional writer who is paid to write books, articles, stories, reports, or other texts that are officially credited to another person. Celebrities, executives, and political leaders often hire ghostwriters to draft or edit autobiographies, magazine articles, or other written...

, co-written, and/or independently produced more than 30 books in the two decades since serving nine months in Federal prison in 1988. In 1999 he founded a nonprofit writers resource center in Bucks County, Pennsylvania
Bucks County, Pennsylvania
- Industry and commerce :The boroughs of Bristol and Morrisville were prominent industrial centers along the Northeast Corridor during World War II. Suburban development accelerated in Lower Bucks in the 1950s with the opening of Levittown, Pennsylvania, the second such "Levittown" designed by...

, and ran it for six years before returning to writing and producing books.

Between 2003 and 2005, with the indictment and conviction of Martha Stewart
Martha Stewart
Martha Stewart is an American business magnate, author, magazine publisher, and television personality. As founder of Martha Stewart Living Omnimedia, she has gained success through a variety of business ventures, encompassing publishing, broadcasting, and merchandising...

 in connection with suspicious trades in Imclone stock, Winans frequently appeared on television and radio programs discussing the issue of insider trading, Stewart's likely fate, and business ethics. He has appeared before law-enforcement and academic audiences speaking about his experiences and the psychology behind white-collar crime
White-collar crime
Within the field of criminology, white-collar crime has been defined by Edwin Sutherland as "a crime committed by a person of respectability and high social status in the course of his occupation" . Sutherland was a proponent of Symbolic Interactionism, and believed that criminal behavior was...

.

Winans once observed: "The only reason to invest in the market is because you think you know something others don't."

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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