Casino groups National Capital I and A Pice of the Action LLC have been accused of securities fraud by the state Comerce Department. Both groups want to start a casino in Botkins and the Department has filed allegations of securites fraud. They also accused the president of Nacional Capital I, Tom Schinippelk, of being envolved in an unregistered sale of securities and of giving false information to investors. Department officials said that Robert Bollinger, partner of A Piece of the Action LLC, sold shares of the company and earned a commission, when he is not allowed to do so, since he is not a licensed dealer.
Thomas Holtsberry, partner of A Piece of the Action, said that they have not done anything wrong and they will answer their charges. The Easter Shawnee Indian tribe is working with National Capital I to build a casino in Botkins. Holtsberry said the initial four partners sold shares to 11 other partners and all the benefits went to National Capital I. He insisted on the fact that Mr. Bollinger did not get any commission, because he was not a partner. However, the Division of Securities of the Commerce Department said that Mr. Bollinger won a commission of 2.000 dollars for each of the eleven sales of shares, which makes a total of 275.000 dollars.
State records indicate that both National Capital I and A Piece of the Action LLC raised 1,68 million dollars to help the Eastern Shawnee Tribe to build casinos in Ohio. Dennis Ginty, spokesman for the Commerce Department, said that both companies can file allegations and respond in an administrative hearing. The Division of Securities of the Commerce Department said that Mr. Schnippel raised 1,4 million dollars in sale of promissory notes to almost 50 investors. These promissory notes guaranteed a return of 10 percent, granting investors 1/16 of the companys income. Investors were told that the construction would begin soon and that political obstacles were irrelevant. Ginty added that if more violations occur the state shall take enforcement measures.
Both Charles Hertlein, attorney of National Capital I, and company spokesman, Terry Casey, agree that there are inaccuracies and errors that the Company is willing to clarify in an administrative hearing.
