Ohio Division of Securities February Enforcement Actions

The Ohio Department of Commerce Division of Securities (“Division”) recently released a summary list of official actions taken during the month of February. The Division issued the following orders in February:

Amish Helping Fund The Division issued a Cease and Desist Order against the Amish Helping Fund on February 8, 2011. The Amish Helping Fund was an Ohio non-profit company which made construction and mortgage loans to Amish individuals and families in Northeast Ohio. The company violated the Ohio Securities Act by selling unregistered securities in the form of “Investment Agreements” to approximately 3,500 investors between 1995 and 2010. The company consented to the Cease and Desist Order.

MidSouth Capital, Inc. The Division issued a Notice of Opportunity for Hearing (NOH) to MidSouth Capital, Inc., an independent broker/dealer based in Atlanta, GA. The NOH alleged that MidSouth sold securities without being licensed as a dealer in Ohio on five occasions in January. MidSouth had submitted an application to the Division for a dealer license on January 4, 2011. (MidSouth consented to a Cease and Desist Order with the Division which was issued on March 16th – Division Order No.

Lochlainn Ohaimhirgin The Division issued a Cease and Desist Order against Mr. Ohaimhirgin for acting as an investment adviser without a license. Mr. Ohaimhirgin had previously been licensed as an investment adviser representative (IAR) in early 2005; he was again licensed as an IAR from mid-2006 to 2009. However, during a period of approximately one year (mid-2005 to mid-2006), Mr. Ohaimhirgin acted as an investment adviser without a license in violation of the Ohio Securities Act. Mr. Ohaimhirgin declined his right to a hearing.

Clint H. Keener The securities salesperson license and investment adviser representative license of Mr. Keener was suspended for ten days by the Division for numerous violations of the Ohio Securities Act and regulations of the Division. The suspension stems from allegations that he executed unauthorized trades, mismarked order tickets, and recommended unsuitable investments. Mr. Keener had previously been fined and suspended by FINRA for a period of two months in mid-2010 for the same conduct. Mr. Keener consented to the suspension by the Division.