| FOR IMMEDIATE RELEASE: February 1, 2001
Sale of Casino
Games, Ltd. Promissory Notes Reached $1.05 Million
(LANSING, MI) - Commissioner Frank M. Fitzgerald today announced the
conclusion of a three year securities investigation on Michael R. O'Brien,
who has been charged with six counts of fraudulent schemes.
"With the arrest and arraignment of Mr. O'Brien, I am proud to announce
that our securities staff investigators have put a stop to this Ponzi
scheme," commented Fitzgerald. "The Office of Financial and Insurance
Services will work with the Attorney General's office during the trial
phase to prosecute Mr. O'Brien to the fullest extent of the law."
O'Brien is being charged on six counts of offering and selling promissory
notes that failed to tell the investors the money was paying previous
investors interest, principal payments, expenses for other businesses
he was associated with and/or personal expenses. Each count is a felony
with penalties of 10 years and/or $25,000.
The promissory notes were for Casino Games, Ltd. and many of the investors
were clients of the tax preparation business, Michael R. O'Brien and Associates,
Ltd. O'Brien represented the promissory notes as funds to purchase gaming
equipment that would be leased or sold to Indian casinos. The promissory
notes carried terms from one to three years and paid annual interest rates
from 8.3% to 11.7%. Since 1988, O'Brien offered and sold approximately
$1.05 million worth of these notes.
Consumers with further questions about this investigation or other investment
activities should contact the Office of Financial and Insurance Services
at (877) 999-6442. The following information regarding promissory notes
and investing is available on the securities consumer information portion
of the OFIS Web site at http://www.michigan.gov/cis/1,1607,7-154-10555_13285_13286---,00.html:
- Be An Informed Investor - is a consumer education tool featuring the
Investor Bill of Rights, questions to ask before investing, and important
telephone numbers to call to check on the status of a security filing
as well as disciplinary action history on broker-dealers, agents, investment
advisers.
- Basics of Savings and Investing - is a guide for educators to enhance
the knowledge and skills of individual investors.
Also available:
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