A Licking County Grand Jury issued a 81-count indictment today against Theodore E. Mong, II, former President of Liberty Bell Association, Inc. in Newark, Ohio. The indictments follow an extensive investigation conducted by the Ohio Department of Commerce's Division of Securities in conjunction with the Newark Police Department.

The Division of Securities' investigation uncovered that Mr. Mong, through Liberty Bell Association, Inc., sold promissory notes to approximately 40 investors located primarily in Licking County, who were defrauded out of approximately $1.5 million.

The indictment includes charges for securities fraud, false representations in selling securities, selling securities without a license, selling unregistered securities (all of which are fourth degree felonies), receiving stolen property (a second degree felony), and corrupt activities under the Ohio Corrupt Activities Act (a first degree felony).

The Division of Securities suspended Mr. Mong's right to sell securities in Ohio on October 4, 1995. Mr. Mong entered into a consent agreement eight days later which confirmed the suspension order. On February 28, 1996, the Division filed a complaint for injunctive relief in the Franklin County Court of Common Pleas seeking to enjoin Mr. Mong and Liberty Bell Association, Inc. from violating the Ohio Securities Act in a securities transaction with International Mortgage Company, Inc. On March 19, 1996, Mr. Mong consented to the injunction.

The indictment cites the following:

THEODORE E. MONG, II, of Columbus, Ohio, was indicted on 32 counts of selling securities without a license, 31 counts of selling unregistered securities, 8 counts of misrepresentations in selling securities, 8 counts of securities fraud, one count of receiving stolen property and one count of corrupt activities.

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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, auctioneers, and unclaimed funds, among others.