SEC Says Former Radio Host Pat Kiley Is ‘Frustrating The Search For Truth About His Involvement In A $190+ Million Fraud’

One of the central figures in the Trevor Cook Ponzi scheme civil case is stonewalling investigators and frustrating efforts to get to the truth, the SEC claims in new court filings.

Former radio talk-show host Pat Kiley, who was named a defendant in the SEC action filed in November 2009, “has produced no documents, and he has answered no interrogatories,” the SEC said.

Kiley was 71 when the SEC case was filed, according to court records.

The agency has asked Chief U.S. District Judge Michael J. Davis of the District of Minnesota to order Kiley to turn over discovery documents that were due “six weeks ago” in mid-March.

Kiley, though, claims he has turned over the materials, according to court filings. But the SEC said it has not received the materials.

Instead, the agency said, Kiley sought to “turn the tables” on the Commission by serving it requests of his own.

“On March 18 — one day before his responses were due — Kiley took the Commission’s requests, tweaked the language, and served them back on the Commission,” the agency said. “That is, Kiley redirected the Commission’s requests back at the Commission, apparently under the mistaken belief that the ball is now in the Commission’s court.”

But “needless to say,” the agency said, “discovery is not a game of tag — a party cannot avoid answering discovery by serving requests of his own.”

Kiley next blamed health problems, including “arthritis and tremors in both hands,” for missing deadlines, the agency said.

“Arthritis is not the real reason for his failure to respond,” the agency said. “Indeed, hand tremors did not prevent him from serving 10 interrogatories and 25 document requests on the Commission on March 18. Arthritis also did not prevent him from litigating the issue of his attorneys’ fees, including the filing of a Motion to Refund Fee . . . and a 12-page affidavit.”

Kiley, the SEC said, has appeared at three hearings since October 2010, showing that “he litigates — when he wants to.”

Participating in discovery, however, has been another matter, the SEC said.

“By refusing to provide information, Kiley is frustrating the search for truth about his involvement in a $190+ million fraud,” the agency said.

Here is a partial list of what the SEC is seeking from Kiley, according to court filings:

• All documents that support the statements made in your Answer filed on October 14, 2010 (Docket No. 535). For example, produce: (1) the “letters of gratitude,” “emails of gratitude,” and “letters, cards, and phone calls” from investors, including the “room full of these tokens of clients’ gratitude.”
• Documents relating to the “customer service” that you performed or experienced.
• Documents relating to the notion that “everything [you] had on earth was invested in the program,” that you were “fully invested” in the currency program, and that you “lost everything” you owned in the program.
• Documents relating to the notion that you “liquidated [customer] accounts” and returned customer funds “against their will” when you “felt they did not fit anymore.”
• Documents relating to the notion that you “predicted accurately (9 months in advance), the failure of banks, investment houses, and the coming real estate foreclosure market.”
• Documents relating to the “commissions” and other funds received from Trevor Cook or the Currency Program.
• Documents relating to the “[p]reparation of and research for the radio program.”
• Documents relating to application materials submitted by investors.

Thee SEC also asked Kiley to:

• Produce the “piles and piles of documentary evidence” that you mentioned at the Rule 26(f) conference with Magistrate Judge Noel on December 16, 2010.
• Produce all affidavits, declarations, responses, and summaries of any kind that you have prepared relating to the Currency Program or to the allegations of the Complaint. This request includes, but is not limited to, the so-called “60-page” affidavit or summary that you prepared about this case, as represented to various investors.
• Produce all documents that refer or relate to any due diligence of whatever kind that you performed about the Currency Program from January, 2006 to July, 2009. This request includes, but is not limited to, any investigation to confirm whether (i) the investor’s funds would be placed – and were in fact placed – in segregated accounts; (ii) the investor’s funds would be used – and were in fact used – to trade foreign currencies; (iii) the foreign currency trading would generate – and did in fact generate – annual returns of 10% to 12%; (iv) the foreign currency trading involved little or no risk; (v) the investor’s principal would be safe and could be withdrawn at any time; and (vi) Trevor Cook, Bo Beckman, Chris Pettengill, and Jerry Durand were competent and trustworthy.
• Produce all documents that refer or relate to communications with investors about the Currency Program. This request includes, but is not limited to, all correspondence with investors, and all representations to investors about the Currency Program.
• Produce all documents that refer or relate to investments by investors in the Currency Program. This request includes, but is not limited to, agreements, applications, account statements, marketing material, so-called “pitch sheets,” and so on.
• Produce all documents that refer or relate to the content of the “Follow the Money” radio program. This request includes, but is not limited to, recordings or transcripts of broadcasts. This request also includes, but is not limited to, any notes, research, preparatory material, or summaries relating to any broadcasts, as well as any communications with listeners about the broadcasts.
• Produce all documents that refer or relate to any compensation of any kind that you received relating to the “Follow the Money” radio program.
• Produce all documents that refer or relate to the content of www.patkiley.com. This request includes, but is not limited to, any information posted on the website, as well as the computer server that contained the contents of the website.
• Produce all documents that refer or relate to communications with Trevor Cook, Bo Beckman, Chris Pettengill, Jerry Durand, or any officer or employee of the Universal Entities or the Oxford Entities about the Currency Program.
• Produce all documents relating to any funds (e.g., cash, checks, or cash equivalents) that you received from Trevor Cook, Bo Beckman, Chris Pettengill, Jerry Durand, or any officer or employee of the Universal Entities or the Oxford Entities.
• Produce all agreements between you and Trevor Cook, Bo Beckman, Chris Pettengill, Jerry Durand, the Universal Entities or the Oxford Entities.
• Produce all documents relating to any personal investment by you in the Currency Program at any time.
• Produce all advertisements or other marketing material relating to the Currency Program, the Universal Entities, or the Oxford Entities.
• Produce all documents referring or relating to your education, professional training, and experience in financial and economic matters. This request includes, but is not limited to, all documents referring or relating to your education, professional training, and experience in the trading of securities or foreign currencies.
• Produce all documents relating to any communications that you had with anyone about the investigation by the SEC or about the merits of this lawsuit.
• Produce all photographs relating to the Currency Program or to the “Follow the Money” radio program. This request includes, but is not limited to, all photographs with Trevor Cook, Bo Beckman, Chris Pettengill, Jerry Durand, or any officer or employee of the Universal Entities or the Oxford Entities.
• Produce all bank statements for accounts used by you (personal or business) from January 1, 2006 to the present.
• Produce all phone records from January 1, 2006 to the present.
• Produce all calendars, time entries, and diaries from January 1, 2006 to the present.
• Produce all federal and state tax returns from January 1, 2006 to present.
• Produce all documents cited or described in your (forthcoming) Rule 26(a) Initial Disclosures and any supplements.
• Produce all documents that you cited in, or documents that you relied upon in preparing, your responses to any interrogatories served by the SEC.