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U.S. Securities and Exchange Commission



Litigation Release No. 19977 / January 23, 2007

Accounting and Auditing Enforcement Release No. 2546 / January 23, 2007

Securities and Exchange Commission v. Edward A. Kiley, et al., Civil Action No. L-01-2146 (USDC D. Md.)

On January 22, 2007, Judge Benson Everett Legg of the United States District Court for the District of Maryland entered final judgments by consent against the two defendants in the Commission’s case: Edward A. Kiley, 55, of Bel Air, Maryland and Richard N. Orzechowski, 66, of Trafford, Pennsylvania.

The final judgments permanently enjoin Kiley and Orzechowski from future violations of Sections 10(b) and 13(b)(5) of the Exchange Act, and Exchange Act Rules 10b-5, 13b2-1, and 13b2-2. In addition, Kiley is also enjoined from any future violation of Section 17(a) of the Securities Act. Finally, the Court imposed officer and director bars against Kiley and Orzechowski pursuant to Exchange Act Section 21(d)(2). Kiley and Orzechowski neither admitted nor denied the allegations in the Commission’s complaint.

Kiley consented to a final judgment that orders him to pay $25,531 in disgorgement of his stock trading profits and $12,903.73 in prejudgment interest but that waives payment in excess of $25,000 and does not impose a civil penalty based on Kiley’s financial condition. Orzechowski consented to a final judgment that orders him to pay a $20,000 civil penalty.

On July 23, 2001, the Commission charged Kiley, the former CEO of Alcore, Inc.—a subsidiary of Advanced Technical Products (ATP)—and Orzechowski, the former CFO of Alcore, with securities fraud and falsification of books and records. According to the SEC’s complaint, this action arose out of the defendants’ roles in misleading auditors and knowingly falsifying Alcore’s books and records as well as Kiley’s sales of ATP stock during the period of the ongoing fraud. See Litigation Release No. 17074.



Modified: 05/10/2007