The jury found Spartan not liable for violating Section 15(c)(2) of the Exchange Act and Rule 15c2-11 thereunder and found Dilley, Eldred and defendant David D. Lopez not liable for aiding and abetting those alleged violations. The jury also found Spartan, Island, Dilley and Eldred not liable for violating or aiding and abetting alleged violations of Section 17(a) of the Securities Act of 1933 ("Securities Act") and Rules 10b-5(a) and (c) of the Exchange Act, and not liable for violating Sections 5(a) and 5(c) of the Securities Act.
Is this a good guy?
On the basis of this Order and Respondent's Offer, the Commission finds that:
Respondent
1. Kennedy, age 43, resides in Lutz, Florida. From June 2000 through November 2001, Kennedy was a registered representative associated with Old Dominion Securities, Inc. ("Old Dominion"), a broker-dealer registered with the Commission.
Other Relevant Individual
2. Robert A. Magnan ("Magnan"), age 39, resides in Clearwater, Florida. On April 5, 1995, the Commission issued an order barring Magnan from association with any broker or dealer. See In the Matter of Robert A. Magnan, et al., Securities Act Rel. No. 7155, Exchange Act Rel. No. 35565 (April 5, 1995)(the "1995 Order").
FACTS
3. In June 2000, Old Dominion agreed to sell stock in a private placement offering conducted by Investment Recovery Network, Inc., a Tampa, Florida company controlled by Magnan. At the time, Kennedy was aware that the Commission had barred Magnan from association with any broker or dealer.
4. Between June 2000 and December 2000, Old Dominion, aided and abetted and caused by Kennedy, unlawfully permitted Magnan to become associated with the firm in violation of the Commission's 1995 Order. During that time period, Kennedy operated Old Dominion's Tampa office from Investment Recovery's headquarters and met with Magnan daily to discuss the Investment Recovery offering. Further, Magnan paid all of Old Dominion's expenses related to the Investment Recovery offering, including rent and secretarial services, and referred potential investors to Kennedy. With Kennedy's knowledge, Magnan also conducted a one to three hour sales presentation to potential investors, effectively making the sale of Investment Recovery stock to these investors.
5. As a result of the conduct described above, Kennedy willfully aided and abetted and caused Old Dominion's violation of Section 15(b)(6)(B)(ii) of the Exchange Act, which prohibits a broker or dealer to permit a person barred by the Commission to become or remain associated with the broker or dealer without the consent of the Commission.
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