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.

• Disciplinary Action Report - is a quarterly report showing disciplinary action OFIS has taken against individuals and/or investment firms doing business in Michigan http://www.michigan.gov/cis/1,1607,7-154-10555_12902_12920---,00.html
• Viatical and Promissory Note Registration press release - is information on necessary Michigan securities registration. http://www.michigan.gov/cis/1,1607,7-154-10555_13222_13250-39473--M_2000_11,00.html