SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16281 / September 14, 1999
SEC v. KEVIN JAMES QUINN, GO IRISH, LTD., AND HMC LIMITED, LLC, Civil Action No. 99-09325 (C.D. Ca.) (DDP)
SEC FILES FRAUD ACTION AGAINST DISBARRED ATTORNEY AND ISSUES AN ORDER SUSPENDING HIM FROM APPEARING OR PRACTICING BEFORE THE SEC
The Securities and Exchange Commission announced that it filed fraud charges today against Kevin James Quinn, a disbarred attorney, and two entities he controls, Go Irish, Ltd. and HMC Limited, LLC. The SEC filed its complaint in the United States District Court for the Central District of California. The complaint filed by the SEC alleges that Quinn stole over 1.2 million shares of stock from two companies in which he served as an officer, director, and/or counsel. Quinn sold most of the stock in secondary market transactions. Quinnís scheme netted him more than $200,000 in profits.
The SECís complaint alleges that in 1997 and 1998, Quinn stole 960,000 shares of common stock of Atlantic Central Enterprises Limited and 300,000 shares of common stock of Advanced Laser Products, Inc., companies in which Quinn was an officer, director, and/or counsel. The complaint alleges that Quinn accomplished this theft by misusing his corporate positions with these two companies. The complaint alleges that Quinn (a) falsified board of directorsí resolutions purportedly authorizing the issuance of the shares; (b) provided the fraudulent resolutions to the transfer agent and induced the transfer agent to issue the shares in the name of Quinn, Go Irish, HMC Limited, or a Canadian brokerage firm in which Quinn deposited the shares; and (c) either (i) sold shares into the market, or (ii) transferred the shares into other accounts in the U.S. and Canada. The complaint alleges that no registration statement was filed or in effect with the Commission and no exemption from registration was available for the shares that Quinn, Go Irish, and HMC Limited sold to the public. The complaint also alleges that Quinn provided no consideration for the stock, and that the board of directors for the two companies did not authorize the issuance, offer, or sale of the stock.
The complaint alleges that Quinn, Go Irish, and HMC Limited violated Sections 5(a) and (c) and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint seeks permanent injunctions, disgorgement of Quinnís ill-gotten gains plus prejudgment interest, civil penalties, an accounting, and an officer and director bar.
The Commission also announced today that it issued an Order of Suspension Pursuant to Rule 102(e)(2) of the Rules of Practice against Kevin James Quinn. The Order suspends Quinn from appearing or practicing before the Commission based on his disbarment by the Supreme Court of California on September 19, 1997.