U.S. Securities and Exchange Commission
Litigation Release No. LR-18218 / July 7, 2003
Commission Obtains Summary Judgment Against Kevin Kirkpatrick for Monetary Relief Sought in Connection with Manipulation Scheme
Securities and Exchange Commission v. Tanner, et al., 02-CIV-0306 (S.D.N.Y.)
The Securities and Exchange Commission ("Commission") announced that the Honorable William H. Pauley, United States District Judge for the Southern District of New York, entered Summary Judgment against Kevin Kirkpatrick ("Kirkpatrick") on July 2, 2003 in connection with a market manipulation scheme.
The Court found that, "from March through at least December 1998, Kirkpatrick and his co-defendants engaged in a scheme to manipulate the price of Maid Aide, Inc. ("MDAN") stock. This tripartite scheme involved the defendants, including Kirkpatrick: (1) gaining control of the market supply of MDAN stock; (2) creating an artificial public demand for the stock through a boiler room operation; and (3) creating an appearance of actual market activity and controlling trading of MDAN stock through Kirkpatrick . . . ." At the time of the scheme, Kirkpatrick was employed as a trader with Olsen Payne and Company, a Utah-based brokerage firm. The Court ordered Kirkpatrick to pay $92,000 in disgorgement, $33,173.81 in prejudgment interest, and a $75,000 civil penalty. By consent judgment dated January 23, 2003, the Court also permanently enjoined Kirkpatrick from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. The Commission subsequently filed its Summary Judgment motion seeking monetary relief against Kirkpatrick.