OHIO INVESTORS MAY BE ELIGIBLE FOR RESTITUTION

FROM D.H. BLAIR BROKERAGE FIRM

Investors in Ohio are eligible for a share of a $2.25 million restitution fund set up by D.H. Blair & Co., Inc., a New York-based brokerage firm with a lengthy regulatory history, Ohio Securities Commissioner Thomas E. Geyer announced today.

Under a Final Order and Consent Agreement issued by Commissioner Geyer, at least 277 former customers of D.H. Blair in Ohio will be contacted by the brokerage firm and told how to file a claim. In order to be eligible for a pro-rata share of the fund, an investor’s claim must be based on trades executed between January 1, 1996 and June 30, 1998, that the investor believes were somehow inappropriate.

Under the terms of the agreement, the claims will be submitted to an expedited mediation/arbitration process conducted by the National Association of Securities Dealers Regulation (NASDR).

The settlement with D.H. Blair was reached by a multi-state task force of state securities regulators of the North American Securities Administrators Association, of which the Department’s Division of Securities is a member. The task force investigated alleged sales practice violations committed by the firm. Geyer announced today that the Ohio Division of Securities signed onto the multi-state agreement. D.H. Blair specialized in the sale of high-risk micro-cap stocks to investors through aggressive cold calling campaigns.

"This settlement will give investors the opportunity to get back at least some of the money they lost because of D.H. Blair’s conduct," said Geyer. "All too often in cases like this, investors receive nothing, so we think this settlement is positive for the investors involved. The NASDR mediation/arbitration forum should provide investors with the opportunity for a speedy and fair resolution of their claims."

D.H. Blair has a lengthy regulatory history. In August 1997, the firm was censured and fined $2 million by NASDR. As part of its agreement with the NASDR, the firm agreed to pay restitution to retail customers for alleged markups in connection with several public offerings. In February 1997, D.H. Blair was censured by the New York Stock Exchange (NYSE) and fined $250,000. In April of 1998, the firm ceased retail operations. The restitution fund established under the agreement with state securities regulators is unrelated to the NASDR and NYSE actions.

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