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STATE OF MAINE

OFFICE OF SECURITIES

121 STATE HOUSE STATION

AUGUSTA, MAINE 04333

 

________________________________

                                                                        )

IN THE MATTER OF:                                   )

                                                                        )

MID-OHIO SECURITIES CORP.,                )                       CONSENT AGREEMENT

RICHARD DESICH, and                              )                              No. 01-021-CAG

LEONARD J. GIBEL                                    )

________________________________)

 

 

            THIS CONSENT AGREEMENT is entered into between the State of Maine Office of Securities ("Office of Securities"), Mid-Ohio Securities Corp. ("Mid-Ohio”), a broker-dealer located in Elyria, Ohio, Richard Desich (“Desich”), the president of Mid-Ohio, and Leonard J. Gibel (“Gibel”), a vice-president of Mid-Ohio.

 

            WHEREAS, on October 30, 2000, the Office of Securities received a complaint from a Maine resident regarding an investment the resident made in Enhanced Auto Receivables (“EARS”) issued by First Choice Management Services, Inc. (“First Choice”) in an Individual Retirement Account with Mid-Ohio; and

 

            WHEREAS, the Office of Securities investigated the Maine resident’s complaint and the Securities Administrator (the “Administrator”) issued a Notice of Intent to Issue Cease and Desist Order against Mid-Ohio and Desich, among others, on July 6, 2001; and

 

            WHEREAS, the Administrator issued an Amended Notice of Intent to Issue Cease and Desist Order against Mid-Ohio, Desich, and Gibel, among others, on October 9, 2001, which Amended Notice of Intent to Issue Cease and Desist Order (the “Notice”) is incorporated into this Consent Agreement by reference; and

 

            WHEREAS, all parties desire an expeditious resolution of this matter;

 

            NOW THEREFORE, without trial or adjudication of any issue of fact or law and without any finding that the conduct of Mid-Ohio, Desich, or Gibel violated the Act,  and without admitting or denying the liability of Mid-Ohio, Desich or Gibel for breach or violation of the Act, it is agreed that:


 

     

      1.   Mid-Ohio agrees not to act as a securities broker-dealer in the State of Maine until and unless it is properly licensed as a broker-dealer in the State of Maine, and will comply with all licensing and other legal requirements governing persons acting as securities broker-dealers in the State of Maine at all times after the date hereof.

 

      2.   Desich agrees not to act as a securities sales representative in the State of Maine until and unless he is properly licensed as a sales representative in the State of Maine and he will comply with all licensing and other legal requirements governing persons acting as securities sales representatives in the State of Maine at all times after the date hereof.

 

      3.   Gibel agrees not to act as a securities sales representative in the State of Maine until and unless he is properly licensed as a sales representative in the State of Maine and he will comply with all licensing and other legal requirements governing persons acting as securities sales representatives in the State of Maine at all times after the date hereof.

 

      4.   Mid-Ohio shall pay the Maine resident Sixteen Thousand Dollars ($16,000) by transferring $16,000 to an approved Individual Retirement Account custodian selected by the Maine resident. 

 

      5.   The Office of Securities will not deny an application for licensing submitted to it by Mid-Ohio, Desich, or Gibel based on the conduct alleged in the Notice and resolved by the execution of this Agreement.

 

      6.   The proceedings referenced in the Notice are dismissed upon the execution and delivery of this Agreement and payment by Mid-Ohio of the amount referenced in paragraph 4.

 


            IN WITNESS WHEREOF, the parties hereto have executed this Consent Agreement of the date set forth above.

 

 

12/27/2001                                                    Bonnie Russell

                                                            (Signed by Bonnie Russell for Christine A. Bruenn)

_____________________                         ______________________________

Date                                                                Christine A. Bruenn

                                                                        Securities Administrator

 

 

10/20/2001                                                    Richard Desich

____________________                           ______________________________

Date                                                                Richard Desich

                                                                        President

                                                                        Mid-Ohio Securities Corp.

 

 

12/20/2001                                                    Richard Desich

____________________                           ______________________________

Date                                                                Richard Desich, Individually

 

 

12/19/2001                                                    Leonard J. Gibel

____________________                           ______________________________

Date                                                                Leonard J. Gibel