Following an extensive investigation conducted by the Ohio Department of Commerce's Division of Securities, in conjunction with the Newark City Police Department, a Licking County Grand Jury issued a 81-count indictment against Theodore E. Mong, II, former President of Liberty Bell Association, Inc. The Division's 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 Ohio Division of Securities suspended Mr. Mong's right to sell securities in Ohio on October 4, 1995. On October 12, 1995, Mr. Mong entered into a consent agreement with the Ohio Division of Securities confirming the October 4, 1995, suspension order. On February 28, 1996, the Ohio Division of Securities 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 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 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, 1 count of receiving stolen property and one count of corrupt activities.