The National Association of Securities Dealers announced today that it is bringing charges against a U.S. securities firm, alleging that manipulated its parent company’s stock to avoid delisting.

The NASD has accused Kirlin Securities (a wholly owned subsidiary of Kirlin Holding Corporation) and two Kirlin officials of engaging in a fraudulent scheme to artificially inflate the price of Kirlin Holding stock. None of the allegations have been proven.

The regulator claims that the purpose of the scheme was to increase the stock price to US$1 a share or higher for 10 consecutive trading days, thereby avoiding a threatened delisting of the stock from the Nasdaq National Market. NASD also charged that one of the firm’s executives forged his parents’ signatures on stock certificates and other documents to generate funds to carry out the manipulation scheme. Additionally, NASD charged the firm with failing to obtain best execution on a customer order of Kirlin Holding stock during the same period.

In January, Kirlin Holding voluntarily ceased having its stock listed on Nasdaq Stock Market and ceased filing periodic reports under the federal securities laws. Its stock is currently quoted in the Pink Sheets.