The Securities and Exchange Commission yesterday accused actor George Hamilton of artifically running up the price of the stock of a small company, then unloading the shares on two acquintences at inflated prices.
Hamilton's stock manipulations produced a $3,800 profit in two days for the actor, the SEC said in a complaint filed in federal court in New York.
The SEC also accused Hamilton of improperly using inside information to profit from trading in the stock of another company.
Without admitting anything, the 39-year-old Hamilton signed a consent order promising not to violate securities laws in the future. Hamilton is in Europe making a movie, his agent said yesterday.
The SEC also obtained a permanent injunction prohibiting Hamilton from securities fraud violations and took action against two other men for improperties connected with trading in in one of the stocks Hamilton was selling.
The SEC complaint accused Hamilton of fraud, making false statements and other violations in the trading of shares of IMP Technology Inc., A Florida firm whose shares are traded on the Boston stock exchange.
On April 22, 1976, when IPM shares were trading for $1.25, Hamilton began buying the shares, the SEC charged. That day his purchases of 2,000 shares amounted to 92 percent of the trading in the stock, SEC calculated.
The following day Hamilton bought more of the stock, placing nine separate orders with two brokerage houses. By 2:22 p.m., the stock was up to $2.75 with Hamilton's purchases accounting for 46 percent of the trading, the SEC complaint said.
About 2 p.m. that day, Hamilton called his personal accountant - who is not named in the complaint - and recommended he purchase IPM stock. The accountant bought 2,500 shares, including 2,200 which were ultimately supplied by Hamilton at a price of $3 a share, the SEC said.
The actor also allegedly touted the stock to an unnamed "female acquaintence" who bought 1500 shares at $3.25 at 2:48 p.m. After Hamilton was the seller of that stock also, earning a total profit of $3800 by selling stock when he was telling others to buy.
The SEC also accused Hamilton of fraud and other securities law violations for acting on insider information buying stock of Pulte Home Corp., a Delaware firm traded on the American Stock Exchange.
In separate complaints the SEC charged similiar violations were made by James Randall, a Beverly Hills businessman and Saul Steinberg, a member of Pulte's board of directors. Steinberg supplied information about a potential merger offer for Pulte, the SEC said. Randall and Steinberg also signed consent orders after the SEC obtained injunctions against them.