Ex-A&P Executive and 5 Others Charged in SEC Lawsuit
Jun. 05, 1990
NEW YORK (AP) _ A former top executive of the A&P supermarket chain was accused Tuesday in federal court of giving inside information about proposed takeovers to friends and business associates.
The charges were made in a civil lawsuit filed by the Securities and Exchange Commission against Alan C. Goulding, A&P's former senior executive vice president and chief operating officer, and five other men who allegedly traded securities based on the information from Goulding.
The commission simultaneously announced that the defendants had agreed to settle the charges, without admitting guilt.
Goulding, 60, of Allendale, N.J., will pay a penalty of $635,000, and the other five will pay a total of $1.46 million in penalties and alleged illegal profits.
A&P, the Great Atlantic and Pacific Tea Co. Inc., operates a nationwide chain of supermarkets based in Montvale, N.J.
The lawsuit said that from May 1986 through March 1987, Goulding learned, through his position at the company, of proposed takeovers by A&P of three competitors - Shopwell Inc., Delchamps Inc. and Waldbaum Inc.
Knowing it was non-public, Goulding improperly passed on the information to three friends or associates who then bought and sold stock in the targeted companies, the SEC said.
One of the recipients, Murray Verlin, 68, of Miami, a part owner of a food distribution company called Pure Maid Inc., in turn tipped off two of his friends about the information from Goulding, the lawsuit said.
The SEC alleged that Goulding also told Verlin about a favorable earnings report in March 1987, before A&P released the figures to the public and that Verlin made money trading on A&P stock.
Goulding took early retirement from A&P in July of 1987, company spokesman Michael Rourke said.
In addition to Goulding and Verlin, the other defendants in the lawsuit are: Robert J. Foley, 68, of Redwood City, Calif., a self-employed food marketing consultant; Joel Lopate, 56, of Miami, no occupation given; Kurt Goldman, 65, of Boca Raton, Fla., ex-president of Johanna Farms Dairy, a New Jersey supplier of dairy products; and Peter Goldman, 62, of Boca Raton, Fla., a former executive vice president of Johanna Farms Dairy.