SECURITIES ACT OF 1933
RELEASE NO. 7909 / October 10, 2000
SECURITIES EXCHANGE ACT OF 1934
RELEASE NO. 43425 / October 10, 2000
ADMINISTRATIVE PROCEEDING
FILE NO. 3-10344
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.