Former Director Indicted
A former director of the Koo Koo Roo Inc. restaurant chain has been indicted by a federal grand jury on charges that he illegally profited from inside information about his board’s decision to appoint Lee Iacocca acting chairman last year.
The indictment of Donald B. Wohl, 68, coincides with a civil action brought against him by the Securities and Exchange Commission. While he has already agreed to settle SEC claims of insider trading, Wohl now faces a possible prison sentence and $4 million in fines if convicted of the four criminal counts, federal authorities said.
Wohl is accused of purchasing 50,000 shares of Koo Koo Roo stock on behalf of three family members and two business associates, before the company’s board announced its decision to appoint former Chrysler Corp. executive Iacocca as acting chairman. He then sold 45,000 of those shares three days later, when the announcement was made, for $65,000 in profit, federal authorities said.
(Bloomberg News)
