Business Notes SCANDALS

Even as investigators uncovered case after case of insider trading based on advance copies of Business Week, editors of the McGraw-Hill magazine hoped that no company employee would be implicated. But last week the scandal struck home: Business Week announced that S.G. ("Rudy") Ruderman, who had broadcast radio reports for the publication for seven years, may have illegally traded stocks mentioned in the "Inside Wall Street" column before the magazine hit the newsstands. The New York Stock Exchange had alerted Business Week to suspicious trades that Ruderman allegedly made this year.

Since the 62-year-old broadcasting editor had violated the magazine's ethical code by not disclosing all his stock holdings, he was fired. The dismissal came one day after the Government filed criminal charges against William Dillon, a former Merrill Lynch broker, for trading stocks based on information in advance copies of Business Week that he allegedly bought at a printing plant for $20 to $30 each.