The Darien Times

Darien’s GOP leader was cited by SEC

Last Updated on Tuesday, February 21, 2012 12:21 PM Written by Susan Shultz
Tuesday, February 21, 2012 09:39 AM

A story was recently posted on Teri Buhl's Wall Street Unplugged: The News They Left Out, which focuses on local media and Fairfield County Wall Street and hedge fund personalities and problems, regarding the New Canaan Patch favoring that town's RTC chairman James O'Hora by deleting comments on his behalf.

In the comment section, "Julie T." pointed out that Darien media hadn't reported that Darien RTC Chairman Bob Bewkes had been the focus of a 2003 Securities & Exchange Commission investigation of insider trading.

Bewkes, who took over the helm of the RTC last summer from previous chairman Harry Artinian, was investigated by the SEC following an incident in January 2003.

The former broker, according to the SEC, sold some Interstate Bakeries Corporation stock after his father, Garry Bewkes, advised him of the company's failing financial future.

The timing of Bewkes' stock sales for himself, friends and family avoided a loss of about $67,000.

A 2004 New York Times article on the incident pointed out that "greed did not seem to be a factor" and the total loss avoided was a "relatively modest amount for a veteran stockbroker who owns a rambling house on the outskirts of the Wee Burn Country Club."

Bewkes told The Darien Times Monday night that the incident was a "civil matter that was settled with the SEC in 2003" and said the court settlement limited his ability to comment.

Darien RTC Vice Chairman John Boulton, part of the committee that interviewed Bewkes, told The Darien Times that the Republican Town Committee was fully aware of Bewkes's civil settlement when interviewing him for membership in September 2010.

"He was questioned directly about the matter during his interview and we were satisfied with his answers," he said in an e-mailed statement on behalf of the RTC.

"This past December, Bob's candidacy for re-election to the RTC was reviewed and recommended by an independent nominating committee, and was subsequently endorsed by the January 2012 Town Republican Caucus," the statement said.

"Bob has honored the terms of the SEC settlement and we consider the matter closed. Bob's tenure as RTC Chairman has been marked by openness, integrity, and accountability," the statement said.

Bewkes has "the RTC's full support," the statement said.

First Selectman Jayme Stevenson, a Republican, was unavailable for comment Monday night.

sshultz@darientimes.com

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