| FOR IMMEDIATE RELEASE AUGUST 7, 1997 |
Contact: Bill
Teets at (614) 644-7187 |
OHIO DEPARTMENT OF COMMERCE OBTAINS
PRELIMINARY INJUNCTION
AGAINST THE INFINITY GROUP COMPANY
Injunction Prohibits The Business From Selling Securities Until It Complies With Subpoena
Lake County Common Pleas Court Judge Martin O. Parks issued a preliminary injunction today against The Infinity Group Company, a Fairport Harbor, Ohio, business that is selling investment opportunities primarily through the Internet. The preliminary injunction continues the July 28 temporary restraining order issued by Judge Parks.
The injunction prohibits the business from selling any securities until it complies with a subpoena and examination request by the Division of Securities. The Division is seeking to review documents and examine Infinity's operation.
"Today's preliminary injunction sends a clear message to The Infinity Group that they must submit their records for review by state securities officials," said Donna Owens, director of the Ohio Department of Commerce.
The Division of Securities has gathered evidence which gives it reason to believe that The Infinity Group Company is engaging in the sale of securities without complying with Ohio's securities laws. The Division became aware of the Infinity Group through its Internet Monitoring Program. Under this program, the Division searches the Internet for offerings available to Ohioans to ensure that the offerings comply with Ohio's securities laws.
Infinity is engaged in the sale of securities in the form of "Capital Units" in a purported trust. The Division has evidence indicating that Infinity has raised several million dollars from investors, including approximately 80 Ohio residents. Based on this information, the Division sought to review documents and examine Infinity's operation. The Division sought the temporary restraining order and then the preliminary injunction after Infinity refused to obey the Division's subpoena and refused to permit a Division examiner access to its offices to conduct the examination.
Ohio residents who may have invested with The Infinity Group Company 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 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. The former Department of Liquor Control joined the Department on July 1, 1997 as the Division of Liquor Control.
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