Trial Date Is Scheduled for Karcher

Carl N. Karcher and 15 others will be tried next spring on charges of illegal insider stock trading, a federal judge decided Wednesday.

U.S. District Judge Edward Rafeedie scheduled April 11, 1989, as the trial date for Karcher, founder of the Carl’s Jr. fast-food chain; 14 family members, and one company employee. The trial is expected to take four to six weeks.

The Securities and Exchange Commission earlier this year filed a civil lawsuit against Karcher, 71, and the others, accusing them of illegal 1984 insider trading.

During a brief hearing Wednesday in Los Angeles, Rafeedie heard arguments from half a dozen defense lawyers, who asked that the trial begin as early as December. But SEC attorney John C. Koutsos countered that the agency needed more time to prepare its case.

Attorneys for the SEC have said in court documents that they intend to depose--or formally question--70 potential witnesses. About 30 of those depositions--including the defendants in the civil suit--have already been taken.

After Wednesday’s session, defense lawyers expressed disappointment over the April trial date.

“We had hoped the trial date would be much sooner so we could have the matter disposed of and my clients’ innocence proven,” said Orville A. Armstrong, the Los Angeles attorney who represents seven Karcher children.

“It’s a sad commentary that the SEC can bring these charges without apparently having the facts to back them up,” added Thomas E. Holliday, attorney for Carl Karcher and his wife.

Myrna D. Morganstern, SEC staff attorney, declined comment.