SEC Alleges Disbarred Lawyer Profited From Stolen Shares

The Securities and Exchange Commission on Wednesday accused a disbarred Santa Monica securities attorney of making more than $200,000 by selling stock he allegedly stole from two companies he worked for.

The SEC alleged in a civil complaint in federal court that Kevin Quinn of Santa Monica stole 960,000 common shares of Atlantic Central Enterprises Ltd. and 300,000 shares of Advanced Laser Products Inc. in 1997 and 1998. He then allegedly sold most of the shares in the secondary market, reaping profit of more than $200,000, according to the complaint.

Quinn did not immediately return a telephone call seeking comment.

He allegedly misused his positions as officer, director and/or counsel with the companies to gain the shares, the SEC charged.

Atlantic Central, based in Bermuda, was a holding company with interests in laser vision-correction centers, and Advanced Laser Products was believed to be in the business of recycling toner cartridges, said the SEC.

The SEC seeks to have Quinn repay his profit with interest, pay civil penalties and be permanently barred from serving as an officer or director of a company.

Separately, the SEC said a Newport Beach investment-advisory firm and its owner agreed to pay a total of $150,000 in fines for inflating the firm’s performance so much that an independent rating service ranked it a top money manager.

The SEC alleged that Engebretson Capital Management Inc. and Lester W. Engebretson, 65, overstated results by as much as 15% in documents distributed from at least 1994 through mid-1998. Neither admitted nor denied the allegations.