Guilty Plea in U.S. Foodservice Insider Trading
o Ahold's acquisition of U.S. Foodservice in March 2000 pleaded guilty in U.S. District Court here last week to six charges of insider trading and to participating in an accounting-fraud scheme. Brady Schofield, who owned seafood companies that sold to U.S. Foodservice, was tipped off to the acquisition by a U.S. Foodservice executive and reaped nearly $300,000 through stock trades, the Securities and Exchange Commission said. He agreed to pay $728,000 to settle civil charges brought by the SEC. Schofield also was ordered to pay a $25,000 fine for his role in a scheme to falsify records of promotional allowances owed to U.S. Foodservice by signing audit confirmation letters that contained false information. In a separate action, the U.S. Attorney's office for the Southern District of New York filed criminal charges against Schofield for insider trading and conspiracy to falsify books and records.
Test of RSS BAR Codes on Produce Launches
NASHVILLE, Tenn. - A new test of Reduced Space Symbology bar codes on produce items was launched last week with the participation of Wal-Mart Stores, Bentonville, Ark., and Loblaw, Toronto, under the auspices of GS1 US, Lawrenceville, N.J. The 14-digit codes will be applied to apples going to Wal-Mart and to apples, avocados and bananas headed to Loblaw, said Greg Rowe, director of business development for GS1 US. Rowe spoke to SN about the test here at the U Connect Conference last week. He said 30 stores would be involved in the initial test. The codes, designed to allow scanning of produce, will be applied along with price-look-up codes. Meats will be added to the test in the third quarter.
Walgreens to Purchase Happy Harry's Drug Chain
DEERFIELD, Ill. - Walgreen Co. here said last week that it has agreed to purchase Happy Harry's, a chain of 76 drug stores based in Newark, Del. A purchase price was not disclosed for the deal, which is set to close this summer, the retailer said. Happy Harry's eight Pennsylvania stores will be converted to the Walgreens name but the company said it plans to keep the Happy Harry's brand on stores in Delaware, New Jersey and Maryland.
Catsimatidis Considers 2009 NYC Mayoral Run
NEW YORK - John Catsimatidis, chairman of Gristedes' parent company, Red Apple Group, based here, is considering running for mayor of New York City as a Republican in 2009, he told SN last week. He previously had considered running for mayor in the 2005 election. "It has been said that New York is ungovernable, but ever since Rudy Giuliani and Mike Bloomberg, they have proven that the city is governable," he said. Although he is known as a Democratic friend of former President Clinton, he described himself as a moderate who would run as a Republican because he is too conservative to represent the city's Democratic party.
Investors Purchase Former Winn-Dixie Warehouse
CHARLOTTE, N.C. - Dallas-based Westmount Realty and Nick Tasooji, a private investor, have purchased a 1-million-square-foot former Winn-Dixie distribution center here. The partnership, W.T. Charlotte, said it will rename the 66.3-acre property Logistics Pointe and convert it to a multi-tenant distribution center. The partnership said it purchased the property from Wachovia Bank, which received the vacant center upon Winn-Dixie's bankruptcy filing. A purchase price was not disclosed.
