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 19 other states which filed a total of 37 actions against 14 securities brokerage firms. The enforcement effort focused on problem securities brokerage firms.

In Ohio, the Division of Securities issued an administrative order today denying the application of Investors Associates, Inc., of Hackensack, New Jersey, for an Ohio securities dealers license. The Division found that Investors Associates was not of "good business repute," as defined by the Ohio Securities Act. The Division's order was based on the brokerage's record of 12 separate disciplinary incidents over the past five years.

In addition to the administrative action taken by Ohio, at least 14 other states have taken action against Investors Associates. "Ohio's administrative 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.

Ohio Securities Commissioner Thomas Geyer pointed out that the division's license denial was not based on the other states' enforcement actions against Investors Associates, but on incidents that had been the subject of an administrative hearing before the Division. "This license application denial is a proactive step that will protect Ohio residents from a securities dealer that has had significant compliance problems over the past several years," Commissioner Geyer said.

The Division's action coincides with the first 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.

# # #