But Tells Press of ‘Many, Many Letters of Support’ : Carl Karcher Skips SEC Suit in Talk to GOP Women

Accusations of insider stock trading notwithstanding, Carl Karcher still gets plenty of respect in Orange County.

Karcher, who founded the Carl’s Jr. hamburger chain, said Tuesday that he has received “many, many letters of support” since becoming the target of an insider trading lawsuit filed last week by the Securities and Exchange Commission.

Responding to a reporter’s question, Karcher declined to say if he believes that the SEC filed its civil suit against him and members of his family in part because he is so well known.

“Some people say it’s a smear campaign,” Karcher said. “I can’t say one way or the other.”

The 71-year-old chief executive spoke Tuesday to about 100 members of the Orange Republican Women, Federated--a sympathetic audience more interested in hearing about his work for the handicapped and charities then his problems with the SEC.

In its lawsuit, the SEC accuses Karcher, founder and chairman of Carl Karcher Enterprises, and his brother, Donald Karcher, company president, of telling other family members in 1984 that the company’s earnings were about to plunge. Based on the information, the SEC claimed, other family members allegedly sold stock and avoided $310,000 in losses.

Public reaction to the suit--at least in Orange County--seems to back the Karchers.

The day after charges were made public last week, for instance, several parishioners at St. Boniface Church in Anaheim patted Donald Karcher on the back and embraced him in a show of support as he and his wife left early-morning Mass.

And at the Republican women’s gathering at the Embassy Suites Hotel in Anaheim Tuesday, several participants who spoke with a reporter agreed with Margaret Zwiener from Orange, who praised Carl Karcher as being “a wonderful man” who has “done a lot” for Orange County.

“I don’t know what the problem is, but it can’t be that great,” Zwiener said. “Think of all the people who wouldn’t have a job without him.”

During his public remarks Tuesday, Karcher avoided any mention of the lawsuit. Instead, he stuck to a rambling, cracker-barrel account of his background and outlook on life, discussing topics ranging from the Pope and President Reagan to hiring the handicapped and contemporary morality.

“The morality in our society--where anything goes, so to speak--is contrary to my philosophy,” Karcher said. “This country was founded on the principle of ‘In God we trust.’ Sometimes we let that go by the wayside.”

As he does in many of his talks, Karcher discussed his family--mentioning his 12 children, 42 grandchildren and three great-grandchildren.

And he stressed the value of hard work. “I’ve told many people if you go into business with the idea of making yourself a millionaire, you’ll never succeed. . . . It doesn’t happen by happenstance,” he said.

Karcher, who typically has an extensive schedule of public lectures, apparently isn’t letting the pending accusations crimp his style. He is scheduled to speak this morning to a prayer breakfast with officials of the city of Tustin.