Ohio Company Fined $5,000 for Securities Violations

ID Securities Admin Actions

Filed June 23rd, 1997

Detected March 17th, 2026

Summary

The Idaho Department of Finance has fined The Ohio Company $5,000 for violating the Idaho Securities Act. The company operated as an unregistered broker-dealer and used unlicensed agents to sell securities in Idaho.

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What changed

The Idaho Department of Finance, through its Securities Bureau, has issued an Agreement and Order against The Ohio Company, a broker-dealer. The company admitted to selling securities in Idaho through unlicensed agents and operating as an unregistered broker-dealer between July 1992 and August 1996, violating Idaho Code §30-1406. As a result, The Ohio Company has been fined $5,000 and must offer rescission to affected Idaho residents.

This action requires The Ohio Company to pay the $5,000 fine within 30 days and to comply with future securities transaction regulations in Idaho. Compliance officers should note the specific violations related to registration and agent licensing, as well as the potential for rescission offers to customers. The fine underscores the importance of adhering to state-specific broker-dealer and agent registration requirements.

What to do next

Pay $5,000 fine within 30 days of order date
Offer rescission to Idaho residents who purchased securities between July 21, 1992, and August 7, 1996
Ensure compliance with Idaho Securities Act for all 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