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STATE OF
OFFICE OF SECURITIES
121 STATE HOUSE STATION
________________________________
)
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
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
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.
(Signed by Bonnie Russell for Christine A. Bruenn)
_____________________ ______________________________
Date
Christine A. Bruenn
Securities Administrator
____________________ ______________________________
Date
Richard Desich
President
Mid-Ohio Securities Corp.
____________________ ______________________________
Date
Richard Desich, Individually
____________________ ______________________________
Date
Leonard J. Gibel