American Greetings Ex-Exec Settles Charges

The former president of American Greetings Corp. has settled accusations that he used insider information to avoid nearly $500,000 in stock losses, the Securities and Exchange Commission said.

Edward Fruchtenbaum, who has denied wrongdoing, agreed to pay back $79,437 of his gains plus $267,022 in fines and court costs. The settlement also prohibits him from serving as an officer or director of a publicly held company for five years, the SEC said.

The commission had accused Fruchtenbaum of having inside information when he bought and then sold 30,000 shares in Cleveland-based American Greetings in December 1998. Fruchtenbaum resigned in June 2000.