REPORTER AND 2 OTHERS GUILTY OF FRAUD FOR INSIDER TRADING
R. Foster Winans, a former WallStreet Journal reporter, was found guilty yesterday of using advance knowledge of Journal articles to make illicit profits in the stock market. Federal District Judge Charles E. Stewart, who heard the case without a jury, also convicted Mr. Winans's two associates: Kenneth P. Felis, a former stockbroker at Kidder, Peabody & Company, and David J. Carpenter, Mr. Winans's longtime roommate and a former news clerk for The Journal. Mr. Winans was found guilty of 59 criminal counts, Mr. Carpenter of 12 counts and Mr. Felis of 41 counts. Mr. Winans and Mr. Felis were convicted of conspiracy to commit securities fraud, among other charges, but Mr. Carpenter was acquitted of that charge. The convictions carry sentences of up to five years in prison for each count as well as fines. Mr. Winans theoretically could be sentenced to as many as 295 years in prison and $266,000 in fines. Mr. Carpenter could receive 60 years in prison and $71,000 in fines, while Mr. Felis could get 205 years and fines of $194,000.