U.S. Securities and Exchange Commission
Litigation Release No. 19103 / February 28, 2005
SECURITIES AND EXCHANGE COMMISSION V. KEVIN JAMES QUINN, CIV. ACTION NO. 1:05-CV-00393-JR (United States District Court for the District of Columbia) (Judge James Robertson)
SEC FILES ACTION AGAINST KEVIN JAMES QUINN FOR VIOLATING TWO ORDERS RELATED TO HIS ROLE WITH PHC HOLDINGS, BLUETORCH, INC., AND CYTATION CORP.
The Securities and Exchange Commission (“Commission”) announced that on February 25, 2005, it filed a civil action in the United States District Court for the District of Columbia against Kevin James Quinn, age 62, of Santa Monica, California, alleging that Quinn violated two Commission orders: one, a 1999 order permanently suspending Quinn from appearing or practicing before the Commission, and the other, a 2000 order barring him from participating in an offering of penny stock.
The Commission’s Complaint alleges that in violation of those orders Quinn, a disbarred attorney, practiced before the Commission and has been participating in a penny stock offering. Specifically, the Commission alleges that Quinn drafted filings that he made with the Commission on behalf of PHC Holdings, a Nevada corporation with its principal place of business in Orlando, Florida, and that he acted as agent and counsel for PHC. The PHC filings included a Form N-54A, according to which PHC elected to be treated as a business development company under the Investment Company Act; a Form 1-E, a notification that PHC was conducting an offering under Regulation E of the Securities Act; and the attached offering circular. PHC common stock is a penny stock.
The Complaint also alleges that Quinn made similar filings on behalf of Bluetorch, Inc., a Nevada corporation with its principal place of business in Cerritos, California, and Cytation Corp., a Delaware corporation with its principal place of business in Bristol, Rhode Island. By drafting filings on behalf of PHC, Bluetorch and Cytation and filing them with the Commission, Quinn practiced before the Commission and, with respect to at least PHC, participated in an offering of penny stock in violation of Commission orders. Order of Suspension Pursuant to Rule 102(e)(2), Sept. 14, 1999, In the Matter of Kevin James Quinn, A.P. File No. 3-10013; Order Instituting Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions, Feb. 3, 2000, In the Matter of Kevin James Quinn, A.P. File No. 3-10137.
In addition to alleging that Quinn violated the two Commission orders, the Complaint alleges that Quinn violated Section 15(b)(6)(B)(i) of the Securities Exchange Act of 1934, which makes it unlawful for any person to participate in an offering of penny stock in contravention of a Commission order. The Complaint seeks, among other things, preliminary and permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties.