U.S. SECURITIES AND EXCHANGE COMMISSION
SECURITIES ACT OF 1933
SECURITIES EXCHANGE ACT OF 1934
IN THE MATTER OF SHAMROCK PARTNERS LTD., JAMES T. KELLY, JOHN R. DOYLE, and STEPHEN J. FISCHER
On October 10, 2000, the Commission instituted a public administrative and cease-and-desist proceeding against Shamrock Partners, Ltd. ("ROCK"), James Kelly ("Kelly"), and John Doyle ("Doyle"), and Stephen Fischer ("Fischer"). ROCK is a registered broker-dealer based in Media, Pennsylvania, Kelly is ROCK's owner, Doyle is ROCK's principal trader, and Fischer was a trader at a second brokerage firm. The Division of Enforcement alleges that during the summer of 1995, each respondent had a role in the stock manipulation of The L. L. Knickerbocker Co. Inc. ("KNIC"). From July 3 to August 11, 1995, KNIC's stock price rose from $6 to $52. Shortly thereafter the stock dropped 38%.
The Division of Enforcement alleges that Kelly and ROCK engaged in secret sales that helped maintain KNIC's artificially high stock price, and that they failed reasonably to supervise a broker subject to their supervision during KNIC's price rise. The Division of Enforcement also alleges that Doyle, who acted as a KNIC market maker, had a collusive trading arrangement with Fischer, who acted as a KNIC market maker at a second brokerage firm, and that this arrangement contributed to KNIC's price rise.
A hearing will be scheduled before an administrative law judge to determine whether the allegations are true and, if so, what, if any, remedial sanctions are appropriate.http://www.sec.gov/litigation/admin/33-7909.htm