HELP! - Keg Pressure Climbing!

I am kegging for only the second time on a Midwest Supplies Duel Tap Draft system which employs the Dual Gauge Regulator. I set the pressure on the keg (outboard regulator) at 14 PSI two days ago and placed the keg, regulators and tank in the fridge (37 deg). The following morning, the pressure had increased to about 30 PSI. I purged the tank back to the original pressure but by that evening the pressure had again risen to above 30 PSI. After turning the regulator to the fully closed position I purged the tank again, back to 14 PSI. This morning the keg was AGAIN above 30 PSI. I connected to keg to the other (inboard) regulator and set it at 14 PSI, where it has stayed. Even with no keg attached to the outboard regulator, and with that regulator in the closed position, it still climbs overnight to 30-40 PSI.

Im I jumping to conclusions to believe that this is a faulty, although brand new regulator? I have a stout ready to be kegged tomorrow, but I don't want to hook it up to this balloon of a regulator and the first keg isn't fully carbonated yet!

Any reasonable explanation or advice on fixing this possibly faulty reg?

Thanks in advance!

It's either a faulty regulator or it's set at 30psi. Try to turn it down if you can; otherwise, send it bacl.