Injunction Given in Alleged Stock Fraud

The Securities and Exchange Commission has won a permanent injunction against 10 defendants who allegedly ran a $1.6-million penny-stock fraud during the mid-1980s.

Ramon D’Onofrio of Anaheim Hills and the others were accused by the SEC of running up the price of Kinesis Inc., a Kirkland, Wash., company that makes athletic shoes. The injunction prohibits the defendants from violating SEC laws. It also orders D’Onofrio to pay a $700,000 judgment.

The SEC alleged that D’Onofrio and the others drove the price of Kinesis stock up to $22 a share from $5 through a series of sham transactions.

The SEC said that D’Onofrio previously had been convicted four times of security fraud and had been enjoined five times by the SEC for violations of security laws.