At the request of the Ohio Department of Commerce’s Division of Securities, Clermont County Common Pleas Court Judge Jerry McBride issued a temporary restraining order today against D. Gerald Lach and several entities that he operates.

The order prohibits Lach and various entities from violating the Ohio securities laws in connection with the sale of securities in Community Concerned Citizens, Inc. ("CCC"), Storehouse: Malachi 3:10, Inc., ("Storehouse"), Cincinnati Regional Initiative, Inc. ("CRI"), Western Regional Authority, Midwest Regional Authority, Inc., ("MRA") and Golden Age Development Corporation. Approximately 300 individuals had invested approximately $2 million in these companies.

"I am very pleased that Judge McBride granted our request for a restraining order in this case," said Director of Commerce Gary Suhadolnik. "This allows our enforcement authority to be used to the maximum extent of the law in order to ensure full investor protection," he added. The Division of Securities also asked the court to permanently enjoin Lach and his related entities from violating the Ohio securities laws. Judge McBride will hear arguments regarding the preliminary injunction on Wednesday, May 24 at 10:30 a.m.

In addition to granting the restraining order, Judge McBride appointed Cincinnati attorney Robert F. Brown, of the Rendigs, Fry, Kiely & Dennis law firm, as receiver to take control of the assets of Lach and related entities.

To obtain the restraining order, the Division of Securities presented evidence that Lach sold securities that were not properly registered or exempted under Ohio law. For example, Lach told investors that they would receive shares of a for-profit entity, such as CRI or MRA if they made "tax deductible donations" to his non-profit entities CCC and Storehouse. According to an affidavit filed with the Court, Detective John Lucas of the Union Township Police Department attended a January 27, 2000 investment meeting undercover and recorded Lach soliciting him and others to pay money to Storehouse in exchange for stock in MRA.

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D. Gerald Lach News Release

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The Division also presented evidence that Lach misrepresented the nature of the investments, including the value, expected return and associated risks. For example, Lach promised investors that CRI, and later, MRA, would be listed on the NASDAQ Stock Market within a few weeks, but neither is listed nor has Lach filed an application to be listed on that market.

Thomas Geyer, Commissioner of the Division of Securities, noted that this case is a priority for his office. "I am very concerned because of the amount of money that has been raised in apparent disregard for the Ohio securities laws," he said.

Ohio residents who may have invested with D. Gerald Lach or one of his entities should telephone the Ohio Investor Protection Hotline at 1-800-788-1194 (or 614-466-6140 in central Ohio) if they believe they have information which may assist the Division's investigation, or if they have questions regarding their investment or the Division's investigation.

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The Ohio Department of Commerce's Division of Securities is responsible for protecting investors from unfair and fraudulent practices in the securities industry. The Division promotes an honest and fair securities market in Ohio 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

 

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