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Department Orders Two Firms and an Individual to Cease a Private Securities Offering, Make Restitution to Investors and Pay a Penalty

Wednesday, October 10, 2012

Department Orders Two Firms and an Individual to Cease a Private Securities Offering, Make Restitution to Investors and Pay a Penalty

Department Orders Two Firms and an Individual to Cease a Private Securities Offering, Make Restitution to Investors and Pay a Penalty

The Department of Insurance, Securities and Banking ordered The Federal Reserve Bank of Fite & Co. Holdings, American Investment Group and Christopher Eric Fite to stop selling securities in American Investment Group, to make restitution to eligible District purchasers of those securities and to pay a penalty of $40,000.

Commissioner William P. White said the respondents:

  • Used the word “bank” in the company’s title without disclosing that it is not supervised by a bank regulator;
  • Falsely stated in June on the Form D filed with the department American Investment Group is incorporated in the District;
  • Claimed incorrectly that the department had approved the offering, while the department had in fact merely acknowledged receiving the Form D.

Mr. Fite, on behalf of the companies, has filed a response contesting the department’s order. Mr. Fite is executive officer of American Investment Group and chairman of The Federal Reserve Bank of Fite & Co. Holdings.

The respondents purport to have offices at 1090 Vermont Avenue, NW, in the District and in Canton, Ohio.

The commissioner thanks enforcement officials in Ohio’s Division of Securities for having brought this matter to the department’s attention and for their valuable assistance.