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GAF Corp. Is Fined $2 Million for Stock Scheme

From Reuters

A federal judge Friday fined GAF Corp. $2 million and sentenced the company’s vice chairman to six months in prison for their role in a stock manipulation scheme.

GAF Corp. and Vice Chairman James Sherwin were found guilty of trying to boost the price of Union Carbide Corp. stock in 1986 just before GAF was about to sell off a large block of Carbide shares. The stake was accumulated by GAF after a failed takeover attempt for the large chemical company.

Wayne, N.J.-based GAF, a specialty chemicals and building products company, and Sherwin were found guilty in December, 1989, of all eight counts growing out of the alleged stock manipulation scheme.

Their conviction came after the third trial of the case. The first two ended in mistrials.

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