CHICAGO –&#Some Illinois residents could be entitled to
part of a $2.25 million fund created because of alleged
securities abuses by a New York-based brokerage firm,
Illinois Secretary of State Jesse White said today.
A multi-state task force of securities regulators,
including Illinois, found that sales abuses were allegedly
committed by D.H. Blair and reached a settlement with the
firm. The company specialized in the sale of high-risk
micro-cap stocks.
"I applaud the task force for uncovering these abuses,"
White said. "These companies need to be fully prosecuted and
their victims fully compensated when they violate the law."
The settlement applies to customers who believe they
fell victim to the company’s practices between Jan. 1, 1996,
and June 30, 1998.
The consumers who had invested with D.H. Blair will be
contacted by the firm and told how and when to file a claim.
They will then have 90 days from the date of the notice to
file their claims.
Under the terms of the agreement, the claims will be
submitted to a branch of the National Association of
Securities Dealers (NASDR). Illinois customers who do not
receive a notification letter may contact Secretary White’s
Illinois Securities Department at 1-800-628-7937.
In August 1997, D.H. Blair was censured and fined $2
million by NASDR. As part of its agreement with the NASDR,
the firm agreed to pay restitution to customers for alleged
excessive markups with several public offerings. In February
1997, D.H. Blair was censured by the New York Stock Exchange
(NYSE) and fined $250,000. In April 1998, D.H. Blair ended
retail sales operations.
Secretary White’s Securities Department regulates the
state’s securities industry, protects Illinois investors and
maintains a fair and orderly securities marketplace.
