Ohio and 18 other states have joined federal regulators in a crackdown on entertainment-related securities law violations. This year alone state securities regulators have brought actions against dozens of firms touting dubious investments in movies, television programs, infomercials, theme restaurants and Internet gambling. Actions ranged from cease-and-desist orders to the freezing of assets and criminal charges.

In all, 19 states announced 51 actions against 39 firms and individuals. The crackdown -- code-named "Project Risky Business"-- was announced at a news conference today in Washington attended by representatives of state securities regulators, the Federal Trade Commission and the Securities and Exchange Commission.

"There is nothing new about con artists developing schemes that capitalize on what is news," said Donna Owens, Director of the Ohio Department of Commerce. "In today's entertainment-oriented society, Ohioans need to be on guard against investment deals that fall outside of Ohio's securities laws."

Before making any investment decision, Director Owens encourages Ohioans to call the Division of Securities Investor Protection Hotline at 800-788-1194. They can check to see if their securities salesperson and brokerage firm are licensed to sell securities in Ohio and if there are any disciplinary records against them. You can also check on whether a security is properly registered with the state of Ohio.

As part of the national crackdown, the Ohio Department of Commerce's Division of Securities has taken several enforcement actions recently involving entertainment-related securities law violations:

• A cease and desist order was issued against Capital Funding And Financial Group, Inc. and KidZTime TV on January 30, 1998. Capital Funding and KidZTime have offices in Lakewood, Colorado and KidZTime had an office at 3040 Riverside Drive, Columbus, Ohio. KidZTime, which produced non-violent and educational cable television programming for children, sold purported general partnership units in KidZTime affiliates that were not registered for sale in Ohio.

• On August 5, 1998, the Division of Securities has initiated the process to issue a cease and desist order against The Sterling Multi-Media Co., of Lakewood, Colorado. The company, which sells products through direct television marketing campaigns, sold media units which represent investments in the proceeds from Sterling product sales. The Division alleges that the securities being sold were unregistered in Ohio and that false misrepresentations were made in the sale of these securities. The company has until September 4, 1998 to request an administrative hearing.

• The Division issued a cease and desist order on July 10, 1997 against Gaming World, Ltd. of St. John's, Antiqua, West Indies. The company, which was offering sports wagering services over the Internet, was ordered to cease and desist from offering unregistered securities to Ohio residents. The Division learned of these securities law violations through its Internet Monitoring Program, which monitors securities offerings available to Ohio residents on the Internet for compliance with Ohio securities laws.

"No monitoring effort will ever be able to check out every investment scheme or claim made on the Internet," Ohio Securities Commissioner Thomas Geyer said. "The best self-defense tactic against cyberfraud is to call the Investor Protection Hotline to learn whether the firm or salesperson is licensed and whether the security is registered."

Geyer also noted that a multitude of investor protection literature is available by visiting the Securities portion of Commerce's web page at www.state.oh.us/commerce or by calling the investor protection hotline at 800/788-1194.

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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, liquor, auctioneers, and unclaimed funds, among others. The department's Internet address is www.com.state.oh.us.