The subject of this press release 4086-97 and the CFTC's enforcement action is in no way related to Allied Financial Group of Upland, California.

Release: #4086-97 (C2-94-981)   For Release: December 11, 1997

**OHIO COURT PERMANENTLY BARS ALLIED FINANCIAL GROUP, INC. (AFG) OF POWELL, OHIO, AND   ROBERT BOBO FROM THE FUTURES INDUSTRY; AFG AND BOBO AGREE TO PAY RESTITUTION TO   DEFRAUDED INVESTORS**

**Court Order Stems from a Six-Count Anti-Fraud Enforcement Action Brought   Against**

**the Defendants in 1994 by the CFTC and the State of Ohio**

   WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that on   November 19, 1997, the Honorable John Holschuh Sr., U.S. District Court Judge for the   Southern District of Ohio, entered a consent permanent injunction order, which, among   other things, bars **Allied Financial Group, Inc. (AFG)** located in Powell, Ohio,   and **Robert Bobo** of Worthington, Ohio from the U.S. futures markets and the   securities industry in the State of Ohio and orders them to pay restitution to   defrauded investors.  

   The order was entered to settle a six-count injunctive complaint filed by the CFTC and   the Ohio Division of Securities, a co-plaintiff with the CFTC in the action, on   October 11, 1994, against AFG, Bobo, and **Jeffrey A. Smith** of Westerville, Ohio,   in the U.S. District Court, charging that the defendants' activities, among other   things, defrauded commodity investors in violation of the anti-fraud provisions of the   Commodity Exchange Act (See CFTC News Release #3793-94, October 14, 1994). AFG was   alleged to be a commodity pool operator controlled by Bobo and Smith.  

   The complaint charged that from February 1993 through October 1994 the defendants   cheated and defrauded commodity pool investors and that they solicited $844,093 from   approximately 60 Ohio residents by falsely representing to investors and potential   investors that they were operating a highly profitable commodity futures pool. The   complaint also alleged that defendants misappropriated most of the money for their own   use, invested only a small portion of the funds in commodity futures, and issued false   reports and monthly statements to investors showing increasing profits from commodity   trading when, in fact, no trading was occurring.  

   Under the terms of the consent order, defendants AFG and Bobo have agreed to be   permanently enjoined from committing further violations of federal commodity law and   to make immediate restitution in the amount of $150,336 for the benefit of customers   to a court-appointed administrator. Finally, the consent order prohibits the   defendants from ever seeking registration with the CFTC in any capacity.  

**Settlement Order with Smith is Pending Before the Court**

   The parties have also presented a separate consent order of permanent injunction   against defendant **Jeffrey A. Smith** to Judge Holschuh. This order, which is   pending before the Judge, would enjoin Smith from participating in the U.S. futures   markets and the securities industry in the state of Ohio and require Smith to disgorge   his ill-gotten financial gains from his participation in AFG's activities.