A Massapequa man who served as a front man in an IPO scheme has reached an agreement with the Securities and Exchange Commission barring him from participating in penny stock offerings, the agency said.
Kevin McDonnell, 60, was listed as the secretary and principal financial officer of Caribbean Pacific Marketing Inc. in the Boca Raton, Florida, company's 2012 registration statement for an initial public offering, but he really was "a figurehead," the SEC said in an administrative order published Friday.
Although the registration statement said McDonnell was responsible for the development of new markets, business planning and corporate strategy, two Boca Raton men who previously had been sanctioned by the SEC, William Reilly, a disbarred attorney, and Manny J. Shulman, actually controlled the company, the agency said.
Caribbean Pacific's registration statement described the company as a marketer of "all-natural sun care and skin care products," but investors were later told that Caribbean Pacific would merge with another Florida company to develop a vacation community in Belize, the agency said.
The prospectus of Caribbean Pacific said that as of June 30, 2012, the company had net assets of $20.
The SEC suspended the company's IPO registration in December 2012. McDonnell also was fined $7,500, the SEC said.
Calls to phone numbers listed under McDonnell's name were not returned.