Idaho DOF Order Against The Ohio Company for Unregistered Securities

ID DOF Admin Actions

Filed June 3rd, 1997

Detected March 18th, 2026

Summary

The Idaho Department of Finance issued an order against The Ohio Company for selling unregistered securities and operating without proper broker-dealer registration. The company agreed to pay a $5,000 fine and offer rescission to affected Idaho residents.

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What changed

The Idaho Department of Finance, Securities Bureau, has entered into an Agreement and Order with The Ohio Company (Respondent) resolving violations of the Idaho Securities Act. The Respondent, a licensed NASD broker-dealer since 1939, had a pending registration application with Idaho since November 1996. The company admitted to selling securities in Idaho through unlicensed agents between July 1992 and August 1996, violating registration requirements.

The Respondent has agreed to make an offer of rescission to all Idaho residents who purchased securities from them in the last five years. Additionally, The Ohio Company must pay a $5,000 fine to the Department within thirty days of the order date and comply with future Idaho securities transaction regulations. This action serves as a reminder to entities operating across state lines to ensure proper registration and agent licensing.

What to do next

Pay $5,000 fine by July 3, 1997
Offer rescission to affected Idaho residents
Ensure compliance with Idaho Securities Act for future transactions

Penalties

$5,000 fine

Source document (simplified)

ALAN G. LANCE ATTORNEY GENERAL STATE OF IDAHO MARYE. HUGHES Deputy Attorney General State of Idaho DEPARTMENT OF FINANCE PO BOX 83720 BOISE ID 83720-0031 Telephone: (208) 332-80 Facsimile: (208) 332-8098 BEFORE THE DIRECTOR OF THE DEPARTMENT OF FINANCE OF THE STATE OF IDAHO STATE OF IDAHO, Department of Finance, Securities Bureau, Complainant, vs. THE OHIO COMPANY, Respondent. DocketNo. 1997-7-43 AGREEMENT AND ORDER The Director of the Department of Finance has reviewed the pending broker-dealer registration application of The Ohio Company (Respondent). Pursuant to said review, it appears to the Director that violations of the Idaho Securities Act, Idaho Code §30-1401 et seq., have occurred. The Director and Respondent have agreed to resolve this matter without a public hearing. Therefore, the Director deems it appropriate and in the public interest that this Agreement and Order be entered. Respondent consents to the entry of

BACKGROUND 1. Respondent is a broker-dealer which has been licensed with the NASD since September 11, 1939. 2. Respondent has had a pending broker-dealer registration application on file with the Director since November 6, 1996. 3. Upon inquiry by the Department, Respondent admitted having made sales of securities in Idaho, through unlicensed agents, prior to becoming registered as a broker-dealer in Idaho. FINDINGS OF VIOLATIONS 4. Respondent purchased and sold securities for the accounts of ten Idaho investors from July 21, 1992 through August 7, 1996. At no time during this period was Respondent registered by the Department as a broker-dealer in Idaho. Idaho Code §30-1406 requires the registration ofbroker- dealers prior to conducting securities business in Idaho. Respondent has violated Idaho Code §30- 1406. 5. Respondent purchased and sold securities for Idaho investors during the above time period through unlicensed agents. Idaho Code §30-·1406 requires the licensing of broker-dealer agents prior to conducting securities business in Idaho. Respondent has violated Idaho Code §30- 1406. REMEDIES 6. Respondent admits to the allegations contained in 7. Respondent agrees to make an offer of rescission, in accordance with Idaho Code

§30-1446 to all Idaho residents who were sold securities by Respondent in the last five years. 8. Respondent agrees to pay a fine to the Department in the amount of $5,000 within thirty (30) days of the date of 9. Respondent agrees to comply with the provisions of the Idaho Securities Act in future securities transactions. DONE AND DATED at Boise, Idaho this day of June, 1997. ---BY: NAME: Title: THE OHIO COMPANY fl, I<£ rl¥ A LL e-.;J }. ,f ,\ D IT 'l.Tllo.J 'T' ~'· r< A NT A N LVlI.i'.... L 1 r; J.. ' Vr-*..1..J. .LJ.L'..a.J. Bureau Chief, 'ecurities Bureau Department of Finance State of Idaho IT IS SO ORDERED This ~ 3~~ day of June~ ~97. 1~.~ GAVINM.GEE Director of Finance