The U.S. Securities and Exchange Commission reported yesterday that the federal court in Nevada entered a final judgment, by consent, against a Canadian accountant in connection with a stock manipulation and accounting fraud scheme that occurred between 1999 and 2002.

The judgment permanently enjoins Barry Duggan of Vancouver from violating the antifraud, reporting, books and records and internal accounting controls provisions of the federal securities laws. It also orders Duggan to pay a US$25,000 civil penalty, prohibits him from acting as an officer or director of a publicly-traded company and bars him from participating in any offering of a penny stock. Without admitting or denying the allegations, Duggan consented to the entry of the final judgment against him.

The SEC says that the judgment arises out of a civil action filed by the SEC against Exotics.com Inc., Nevada corporation based in Vancouver, 12 other principal defendants and a relief defendant. The commission alleged in its complaint that, between at least 1999 and 2002, Exotics, which was then an Over-the-Counter Bulletin Board company in the business of operating adult Web sites, was the subject of a manipulation and accounting fraud perpetrated by, among others, its officers, attorneys and outside auditors.

The commission also issued a settled order instituting administrative proceedings against Duggan, which suspends him from appearing or practicing before the commission as an accountant.