SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 17746 / September 26, 2002
Accounting and Auditing Enforcement
Release No. 1633 / September 26, 2002
SEC v. William P. Trainor, Vincent D. Celentano, Medical Diagnostic
Products, Inc. (f/k/a Novatek International, Inc.), Karen Losordo, Diane M.
Trainor, Daniel J. Trainor, Geraldine Trainor and Mary N. Celentano, Civil
Action No. 98CV01533 (EGS) (D.D.C.)
MEDICAL DIAGNOSTIC PRODUCTS, INC.
ENJOINED IN FRAUD ACTION
The United States Securities and Exchange Commission ("Commission")
today announced that on September 17, 2002, the Honorable Emmet G.
Sullivan of the United States District Court for the District of
Columbia entered a Final Judgment As To Medical Diagnostic Products,
Inc. ("MDP") ("Final Judgment") in the above-captioned civil action.
The Commission sued MDP, a Columbia, Maryland-based company, for its
role in a fraudulent scheme involving the sale and purchase of its
securities.
MDP (f/k/a Novatek International, Inc.), consented, without admitting
or denying the allegations of the Commission's complaints, to entry of
a Final Judgment that permanently enjoins the company from violating
Sections 10(b), 13(d), and 13(b)(2)(A) and (B) of the Securities
Exchange Act of 1934 and Rules 10b-5, 12b-20, 13a-13 and 13b2-1
promulgated thereunder.
On June 18 and August 12, 1998, the Commission filed its complaint and
amended complaint ("Complaints"), respectively, against MDP and others
based on their participation in a fraudulent "pump and dump" scheme
involving the purchase and sale of MDP securities. MDP claimed to have
the distribution rights to distribute in South America medical
diagnostic test kits designed to rapidly detect the presence of
infectious diseases such as cholera and HIV. Between April 11 and
September 3, 1996, MDP issued a series of false press releases
announcing that it had entered into contracts, worth more than $400
million, with several South American entities for the distribution of
the diagnostic test kits. According the Commission's Complaints, these
contracts never existed.
On January 10, 2002, Judge Sullivan entered an order staying the
Commission's action against the remaining defendants in the
Commission's case, pending the outcome of the criminal proceeding
SNIPPETS:
MEDICAL DIAGNOSTIC PRODUCTS, INC.
The United States Securities and Exchange Commission today announced that on September 17,
The Commission sued MDP, a Columbia, Maryland-based company, for its role in a fraudulent
MDP, consented, without admitting or denying the allegations of the Commission's complaints,
On June 18 and August 12, 1998, the Commission filed its complaint and amended complaint,
MDP claimed to have the distribution rights to distribute in South America medical diagnostic
Between April 11 and September 3, 1996, MDP issued a series of false press releases
According the Commission's Complaints, these contracts never existed.
On January 10, 2002, Judge Sullivan entered an order staying the Commission's action against
pending the outcome of the criminal proceeding against defendant William P. Trainor.
For additional information, see Litigation Release Nos.
, and, and Securities Exchange Act of 1934 Release Nos.
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