The Ohio Department of Commerce's Division of Securities today joined in the largest nationwide enforcement effort coordinated by state securities agencies. The Division joined 27 other states which filed 102 enforcement actions against 73 securities brokerage firms. The enforcement effort focused on problem securities brokerage firms operating nation-wide.

In Ohio, the Division of Securities has taken action against five problem securities dealers, including the refusal of the renewal of the Ohio securities dealer license of LaJolla Capital Corporation of LaJolla, California. The refusal was issued on July 22, 1998, after a Department of Commerce hearing examiner upheld the Division's finding that LaJolla was not of "good business repute," as defined in the Ohio Securities Act, based on 13 disciplinary incidents incurred by LaJolla. In addition to Ohio's action, five other states also took action against LaJolla as part of the coordinated enforcement effort. "Ohio's license refusal order and the actions taken by other states send a clear message that we are working together to protect the nation's investors," said Donna Owens, director of the Ohio Department of Commerce.

The other actions taken by the Division are:

• On May 8, 1998, the Division issued an administrative order suspending the Ohio securities dealer license of Royal Palm Investments, of Green Acres, Florida; an administrative hearing on the suspension is scheduled for July 28, 1998; four other states also took action against Royal Palm as part of the coordinated effort.

• On May 13, 1998, the Division issued an administrative order suspending the Ohio securities dealer license of Duke & Co., of New York, New York; seven other states also took action against Duke as part of the coordinated effort.

• On June 23, 1998, the Division issued an administrative order suspending the Ohio securities dealer license of Meyers Pollock Robbins, Inc., of New York, New York; two other states also took action against Meyers Pollock as part of the coordinated effort.

• On July 1, 1998, the Division issued an administrative order suspending the Ohio securities dealer license of Wise Choice Discount Brokerage, of New York, New York; two other states also took action against Wise Choice as part of the coordinated effort.

The Division's actions coincide with the second phase of a national campaign by state securities agencies and the North American Securities Administrators Association (NASAA) against securities dealers that use fraudulent sales practices and have other compliance problems. Today's actions result both from NASAA-organized examinations as well as investigations by individual states. "This coordinated effort demonstrates the importance of state law in protecting investors and the marketplace from problem securities dealers," Commissioner Geyer said. The first phase of the campaign, launched in May 1997, resulted in 20 states filing a total of 37 actions against 14 securities brokerage firms.

In making today's announcement, Director Owens took the opportunity to remind Ohioans of some simple and straightforward considerations to make before investing:

1. Set realistic investment expectations. Despite annual stock market returns of 20%-30% in recent years, large companies traded on the stock market have historically averaged a 10% annual return.

2. Diversify your investment portfolio. Diversification means owning a variety of investments with different levels of risk and different expectations of returns. Investors should consult with their investment professionals to determine an appropriate level of diversification for their particular situation.

3. Realize that all investments carry risks. You can lose money on any investment opportunity. No matter what anyone tells you, there is no such thing as a "guaranteed return" or a "can't miss" deal.

4. Investigate before you invest. Before making any investment decision, call the Division of Securities Investor Protection Hotline at 800-788-1194. You can check to see if your securities salesperson and brokerage firm are licensed to sell securities in Ohio and if there are any disciplinary records against them. You can also check on whether a security is properly registered with the state of Ohio.

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The Division of Securities promotes an honest and fair securities market where individuals and businesses can raise capital and investors can expect a fair return on their investment. Other Commerce divisions enforce regulations regarding industrial compliance, financial institutions, real estate, liquor, auctioneers, and unclaimed funds, among others. The department's Internet address is www.com.state.oh.us.