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Eight Ohioans Charged With Insider Trading on Revco Buyout

July 25, 1989

WASHINGTON (AP) _ Another eight people have been accused of trading on inside information about the 1986 leveraged buyout of Revco Drug Stores Inc.

Two separate civil complaints, filed Monday at federal court in Cleveland and announced by the Securities and Exchange Commission in Washington, charged an Aurora, Ohio, couple and six other Ohioans with illegal use of insider information.

That brought to 16 the number of people accused of passing or trading on confidential corporate information about the Revco deal.

In May, eight people were accused of securities law violations involving Revco.

All of them, including Glenn Golenberg, owner of Golenberg & Co., a Cleveland investment banking concern, settled various civil SEC charges without admitting or denying guilt. Golenberg was not accused of trading on inside information.

Golenberg & Co. was an adviser to Revco management when it planned to take over the nation’s largest drug store chain.

One of Monday’s complaints charged an administrative assistant at Golenberg & Co., Shirley Shiffman, and her husband, George, both of Aurora, Ohio.

The SEC complaint accused Mrs. Shiffman with passing information about the then-unpublicized buyout, that she should have kept secret, to her husband, who allegedly made $46,377 trading Revco common stock and option contracts.

″She intends to defend the suit very vigorously,″ said Mrs. Shiffman’s attorney, Jonathan Eisenberg of Washington.

Her husband’s lawyer, Sheldon Burns of Cleveland, was not in his office when called for comment.

In the second complaint, six people also were accused of trading on non- public Revco information.

All but one of them, Howard Passov of Pepper Pike, Ohio, immediately settled the allegations with the SEC without admitting or denying wrongdoing. They included Passov’s father, Daniel, who agreed to pay a total of $50,911 in fines and restitution.

The other five agreed to pay fines and restitution ranging from $4,950 to $39,608.

Howard Passov’s lawyer, Brian Eisenberg of Cleveland, said he had not yet seen the court papers and could not comment.

According to the complaint, Howard Passov spoke with Golenberg before the buyout became public by claiming he had learned of the matter from Revco Chairman Sidney Dworkin, who led a management group that purchased the company in December 1986.

Golenberg allegedly sought Sidney Passov’s advice about Dworkin’s reaction to the buyout price. There was no allegation of wrongdoing by Dworkin in the SEC complaint.

The complaint alleged that the younger Passov purchased and sold Revco common stock and shared the information with friends and relatives.

The others who settled with the SEC were identified as: J. Christopher Rodeno, the younger Passov’s broker, Bainbridge, Ohio; one of Rodeno’s customers, Marvin I. Block, of Beachwood, Ohio; a friend of the younger Passov, Vincent S. Giorgi, Kirtland, Ohio; and his brother, Carmen F. Giorgi, Painesville, Ohio.

Rodeno, who was an account executive at the brokerage Prescott, Ball & Turben Inc., agreed to a six-month suspension from the securities and investment industries.

The complaint against Golenberg in May did not allege that he personally profited from the confidential information he had about Revco, but he agreed to pay $469,763 in civil penalties. He was not in his Cleveland office when called for comment late Monday.

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