U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20218 / July 31, 2007
SEC v. Vencent A. Donlan, Defendant, and Robin D. Colls Donlan, Relief Defendant, Civil Action No. 07 CV 793 JAH (S.D. Cal.)
Former Stock Options Administrator Consents to the Entry of a Permanent Injunction
The Securities and Exchange Commission today announced that Vencent A. Donlan, age 45, of San Diego, California, and former stock options administrator at Wireless Facilities, Inc. ("WFI"), was permanently enjoined from future violations of the registration and antifraud provisions of the securities laws.
The Commission's first amended complaint alleges that between November 2002 and November 2003, Donlan abused his position as WFI's stock options administrator to issue and transfer over 700,000 shares of WFI stock and stock options to a brokerage account that he held jointly with his wife, Robin D. Colls Donlan ("Colls"). According to the complaint, Donlan caused these transfers by making false entries in WFI's stock options software to create and then hide the unauthorized stock options grants to Colls, and by providing false information to WFI's brokerage firm and transfer agent. The complaint further alleges that Donlan exercised the options and sold the stock on the open market, and Donlan and/or Colls realized net proceeds of approximately $7.2 million.
Donlan, without admitting or denying the Commission's allegations, consented to the entry of a bifurcated judgment permanently enjoining him from future violations of the registration provisions of Section 5 of the Securities Act of 1933 and the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The court entered the permanent injunction on June 5, 2007. The Commission continues to seek the return of ill-gotten gains with prejudgment interest and civil penalties against Donlan.
For additional information, see Litigation Release No. 20101 (May 2, 2007).