The Commission filed a settled registration fraud action yesterday against Daniel O’Riordan, the president of Paradigm Tactical Products. According to the complaint, the founder of the company sold millions of shares of unregistered stock into the market. The stock price was then inflated by false statements. SEC v. O’Riordan, 1:10-CV-10550 (D. Mass. April 2, 2010).

Mr. O’Riordan, who was then the president of the company, facilitated the scheme by signing a false Form D which was filed with the SEC in 2005. That filing reported a private placement which never occurred. In addition, Mr. O’Riordan executed backdated stock certificates and helped prepare a list of purported accredited investors who were in fact nominee shareholders that never paid for or received stock. Rather, they were under the control of the founder. The stock price was inflated with a false press release which overstated sales revenue. After leaving the company Mr. O’Riordan sold unregistered shares of the company.

To settle the action, Mr. O’Riordan consented to the entry of a permanent injunction prohibiting future violations of the registration and antifraud provisions. He also agreed to be barred from serving as an officer or director of a public company and participating in a penny stock offering. See also Litig. Rel. 21476 (April 2, 2010).

A parallel action was filed by the U.S. Attorney’s Office.