PRELIMINARY INJUNCTION ISSUED AGAINST GEORGE J. FIORINI, II,

THE FIORINI AGENCY AND GUARDIAN INVESTMENTS, LLC

 

Hamilton County Common Pleas Court Judge Robert Ruehlman issued a preliminary injunction yesterday against George J. Fiorini, II, The Fiorini Agency, both of Cincinnati, and Guardian Investments, LLC, of Erlanger, Kentucky. 

 

The preliminary injunction prohibits the respondents from:

• selling promissory notes in violation of the Ohio Securities Act
• engaging in fraudulent practices
• destroying or altering documents relating to the sale of securities by Fiorini, The Fiorini Agency, and Guardian Investments, LLC 

 

In addition, Judge Ruehlman ordered the respondents to provide an independent accounting of the receipt and disbursement of investor money invested in Guardian Investments, LLC.  The court ordered the respondents to file an accounting conducted by a certified public accountant or accountancy firm approved by the court by October 31, 2001. 

 

The preliminary injunction was issued after a settlement agreement was reached by the respondents and the Ohio Attorney General’s Office, which is representing the Ohio Department of Commerce’s Division of Securities.   As a result of the settlement agreement, the preliminary injunction hearing that was scheduled for Tuesday, August 21 has been cancelled.  The preliminary injunction will remain in effect until further ordered by the court.

 

In the April 20 complaint filed with the court, the State asked the court to issue a preliminary and permanent injunction and accounting against the respondents.  The State alleged that Fiorini advertised his “10% Plus Income Plan” as a low risk investment opportunity.  However, some investors who responded to the advertisement were offered and sold high risk, unsecured promissory notes in Guardian Investments.  The State said that the promissory notes sold were not properly registered with the Division of Securities and were misrepresented to investors as part of a fraudulent scheme. 

 

In a September 2000 securities filing made by the respondents with the Division of Securities, the respondents said they sought to raise $1 million - $10 million through Guardian Investments.  As of the filing date, Guardian represented that it had already raised $4.5 million. 

 

On July 7, 2000, Fiorini consented to a Division of Securities cease and desist order for his sale of securities in another promissory note issuance, IGW Trust.  In that order, Fiorini admitted to selling at least 31 notes to 19 investors for a total of $1,284,476 in violation of the Ohio Securities Act.  He also admitted to committing fraud in connection with those sales by not disclosing to investors that IGW Trust did not exist.

 

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