Business Notes INDICTMENTS

James Sherwin, vice chairman of GAF, is a chess master who delights in plotting diversions to fool his opponents. Now Sherwin, 54, stands accused of < using such tactics to dupe investors. Last week a federal grand jury in Manhattan indicted Sherwin and GAF, a New Jersey-based chemical and building- products manufacturer, on criminal fraud and conspiracy charges for allegedly manipulating the price of Union Carbide stock. GAF and Sherwin are the latest target of investigations growing out of the Ivan Boesky insider- trading probe.

The crime allegedly occurred in late 1986, when GAF had built up a 10% stake in Union Carbide in a failed takeover bid. Sherwin allegedly persuaded Jeffries & Co., a Los Angeles brokerage, to buy Union Carbide stock to create the impression in the market that the issue was increasing in value. Later, after the price of the stock went up, GAF sold most of its Union Carbide shares for $115 million. GAF has denied any wrongdoing.