Inside-Trading Psychiatrist Is Spared Jail : Securities: A New York man who obtained stock information from a patient--the wife of a top executive--gets probation and a $150,000 fine.

A psychiatrist who traded stocks on inside information about BankAmerica Corp. that he learned while treating the wife of financier Sanford Weill was sentenced Tuesday to five years of probation and fined $150,000.

The sentence was surprisingly light, as the presiding judge had been highly critical of the psychiatrist, Robert Willis, 52, of Tenafly, N.J., for betraying the trust of his patient.

Willis had previously pleaded guilty to two counts of securities fraud for trading in BankAmerica stock based on inside information. He faced a maximum 10-year prison term and fines of $500,000.

Under terms of his probation, Willis is to perform 600 hours of community service a year during his probation and pay a $150,000 fine. He has already paid $137,000 to the government to settle related civil charges brought by the Securities and Exchange Commission.

U.S. District Judge Miriam Cedarbaum said she had “serious misgivings” about not sending Willis to prison but believed that he had accepted full responsibility for his actions by cooperating with the government and making restitution.

She said, however, that she could not ignore the “aggravated nature of this crime.”

Not only did Willis trade and profit from confidential information he learned while treating a patient, he shared the tips with his broker, who passed them on to customers.

“You violated your traditional duty of loyalty and sworn obligation to protect your patient’s secrets,” Cedarbaum told Willis. She said she hoped that he recognized the “reprehensible nature” of his conduct and that he would never again “yield to temptation.”

“I hope other physicians will be deterred from similarly betraying their patients’ trust,” she said.

Although Willis did not speak on his own behalf Tuesday, his lawyer pleaded for leniency, saying it was the first time that Willis had strayed from the law.

He told Cedarbaum that in addition to Willis’ 100 long-term care patients--many of whom are elderly--the psychiatrist treats homeless individuals and AIDS victims free.

Weill, now chairman of Primerica Corp., was president of American Express Co. in 1985, when he told his wife that he was about to attempt to become the chief executive of San Francisco-based BankAmerica.

Weill’s plan included a large cash infusion for the banking company that would have boosted its shares.

Willis bought BankAmerica shares in early 1986, prior to Weill’s intentions becoming public knowledge. The stock rose, and Willis sold his shares for a profit.

In his guilty plea, Willis admitted learning about the deal while treating Joan Weill, who was concerned that the transaction could cause “substantial upheavals” in the Weills’ lives if they had to move from New York to the West Coast.

Mrs. Weill has also filed a civil suit against Willis.