Pat Kiley Seeks Dismissal of Regulatory Lawsuit

Pat Kiley, who is accused by federal regulators of playing a role in a Ponzi scheme orchestrated by Trevor Cook, has formally requested that the suit be dropped.

Pat Kiley, a former nationally syndicated local radio personality, filed a motion last week on his own behalf requesting that a lawsuit against him be dismissed.

The lawsuit was filed in November 2009 by the U.S. Commodity Futures Trading Commission (CFTC) against convicted Ponzi schemer Trevor Cook and other associates. Kiley is also named a co-defendant in a separate complaint filed against Cook by the U.S. Securities and Exchange Commission.

Trevor Cook-who pleaded guilty in April to one count of mail fraud and one count of tax evasion-was sentenced in August to 25 years in prison.

According to Cook's plea agreement, he-with the help of others-raised at least $190 million from 1,000 or more investors by selling investments in a purported foreign currency trading program.

The CFTC's complaint states that Kiley “did not act in good faith or knowingly induced the acts” that constituted fraud on behalf of the companies that he controlled. It accuses Kiley of assisting Cook by soliciting investors through a radio show that he hosted.

Kiley's motion claims that the CFTC lacks jurisdiction over his marketing actions-although he acknowledges that it may have appropriate jurisdiction over Cook's activities.

Furthermore, Kiley requests a dismissal of the suit on the grounds that the CFTC has not provided the necessary specificity as to the fraud allegations he faces-the complaint describes only Cook's actions and “attached Kiley's name to them,” according to Kiley's motion.

The court filing states that Kiley did not engage in fraudulent conduct, and he had no knowledge of illegal activities. Kiley also insists that he was not responsible for keeping accounting statements and records, and therefore did not engage in fraud related to misrepresentation.

Chief U.S. District Judge Michael Davis on Wednesday referred Kiley's motion to U.S. Magistrate Judge Franklin Noel. Public court documents indicate that a hearing has not yet been scheduled to address the matter.

In July, Kiley filed a $42 million defamation suit against the Star Tribune, the Pioneer Press, several reporters, and other media entities. In an amended complaint filed earlier this month, the Pioneer Press was not included as a defendant, and CNN was added to the list of media outlets facing accusations. Kiley claimed that the media printed false statements about his involvement in Cook's Ponzi scheme, which caused severe damage to his reputation and character.