U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC
Litigation Release No. 15724 / April 28, 1998
State of Ohio v. Theodore Mong, Common Pleas Court, Licking County,
Ohio, Case No. 97 CR 207
The Commission today announced that on April 16, 1998 Ted E. Mong
(Mong), who is a defendant in a pending Commission action, was
convicted by a Licking County, Ohio jury on 78 counts of Ohio criminal
law violations. Mong was convicted of securities fraud, receiving
stolen property, engaging in a pattern of corrupt activity, selling
unregistered securities and acting as an unlicensed dealer of
securities in violation of the Ohio Revised Code. On April 23, 1998,
the Court sentenced Mong to a prison term of 15 to 35 years.
The charges against Mong stemmed from his sale of promissory notes to
investors through certain Ohio-based corporations under his control,
including McKenzie-Matthew, Inc. (McKenzie) and Liberty Bell
Association, Inc. (Liberty Bell). Most of the investors who bought
promissory notes from Liberty Bell and McKenzie reside in central
Ohio. The Ohio indictment charged that Mong made such sales through
fraudulent representations and practices. The Commission, in its
pending action against Mong captioned, SEC v. Ted E. Mong, et al.,
S.D. Ohio, Case No. C2-96-989, also alleges that Mong employed
misrepresentations in his sale of promissory notes to Liberty Bell and
McKenzie investors by misrepresenting the risk of investing, the
return investors would receive and the use of investor proceeds. The
Commission further alleges that Mong raised more than $1.6 million
from Liberty Bell and McKenzie investors and nearly all of the
investors lost their entire investment. The Commission has alleged
that Mong's conduct violated the antifraud provisions of the federal
securities laws. In addition, the Commission has alleged that Mong
sold securities without being registered with the Commission in any
capacity in violation of the broker-dealer registration provisions of
the federal securities laws.
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Modified 04/29/1998
SNIPPETS:
State of Ohio v. Theodore Mong, Common Pleas Court, Licking County, Ohio, Case No. 97 CR 207
The Commission today announced that on April 16, 1998 Ted E. Mong, who is a defendant in a
Mong was convicted of securities fraud, receiving stolen property, engaging in a pattern of
On April 23, 1998, the Court sentenced Mong to a prison term of 15 to 35 years.
The charges against Mong stemmed from his sale of promissory notes to investors through
Most of the investors who bought promissory notes from Liberty Bell and McKenzie reside in
The Ohio indictment charged that Mong made such sales through fraudulent representations and
The Commission, in its pending action against Mong captioned, SEC v. Ted E. Mong, et al.,
The Commission further alleges that Mong raised more than $1.6 million from Liberty Bell and
The Commission has alleged that Mong's conduct violated the antifraud provisions of the
the Commission has alleged that Mong sold securities without being registered with the
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