2014-05-29 sec-litreleases litigation_release 64 KB 2,183 chars

SEC v. Richard K. Olive; and Susan L. Olive, No. LR-23009, Southern District of Florida (May 29, 2014) — Press Release

raw: Richard K. Olive and Susan L. Olive

Richard K. Olive and Susan L. Olive, No. 2:13-cv-14048 (May 29, 2014)

Caption: Securities and Exchange Commission v. Reeves

summary

Richard and Susan Olive, a husband and wife, are accused of defrauding seniors through their purported charitable organization, We The People Inc

paragraph

narrative

Richard and Susan Olive, a husband and wife, are accused of defrauding seniors through their purported charitable organization, We The People Inc. The alleged fraud involved approximately $60 million in investor funds, with the Olives agreeing to pay over $2 million in disgorgement and penalties. Richard Olive will pay $1,054,131 in disgorgement and a $1,054,131 penalty, while Susan Olive will pay $45,655 in disgorgement and a $150,000 penalty. The Olives are charged with violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5. The Olives have consented to a final judgment providing permanent injunctive relief and will be barred from the securities industry. The U.S. Securities and Exchange Commission (SEC) resolved a fraud case against Florida-based husband-and-wife duo Richard and Susan Olive, who operated the fraudulent charitable entity We The People Inc., misleading seniors into investing in sham charitable programs. Richard Olive agreed to pay $2.1 million in disgorgement and penalties, while Susan Olive paid $195,655, with both barred from the securities industry and subject to permanent injunctions under federal securities laws. The SEC recovered approximately $60 million in investor funds through a court-appointed receiver. Their former in-house counsel, William G. Reeves, cooperated fully and avoided financial penalties as a result. The case, litigated by SEC attorneys in the Southern District of Florida, concluded with court-approved settlements and industry bans for the Olives. The U.S. Securities and Exchange Commission (SEC) resolved a fraud case against Florida-based husband-and-wife duo Richard and Susan Olive, who operated the fraudulent charity We The People Inc., misleading seniors into donating to a sham nonprofit. Richard Olive agreed to pay $2.1 million in disgorgement and penalties, while Susan Olive paid $195,655, with both barred from the securities industry and subject to permanent injunctions under federal securities laws. The SEC recovered approximately $60 million in investor funds through a court-appointed receiver. Their former in-house counsel, William G. Reeves, avoided financial penalties due to substantial cooperation with the investigation. The Olives also agreed to administrative bars from association with broker-dealers, investment advisers, and penny stock offerings.

Enriched metadata

Scheme: affinity-fraud (90%)
Court: Southern District of Florida
Case No.: 2:13-cv-14048
Settlement: $1,054,131
Disgorgement: $1,054,131
Victim loss: $60,000,000
Entity: Richard K. Olive and Susan L. Olive

Classified affinity-fraud(confidence 90%). EDGAR detection: forms Form D· recall 58% / precision 2%. detection rule →

Extracted insights

Dollar amounts 6

$60.00M $60 million $10M–$100M
$2.00M $2 Million $1M–$10M
$2.00M $2 million $1M–$10M
$1.05M $1,054,131 $1M–$10M
$150K $150,000 $100K–$1M
$46K $45,655 $10K–$100K

Entities 10

person Dugan Bliss
person Ian Karpel
person Michael Cates
person Nicholas Heinke
person Richard K. Olive
agency Securities and Exchange Commission
person Susan L. Olive
organization U.S. District Court For The Southern District Of Florida
organization We The People Inc.
person William G. Reeves, Esq.

Triples 1

Richard K. Olive and Susan L. Olive agree to $2 million settlement in Florida-based charity fraud case

View original SEC litigation releasesec.gov

Extracted body text (2,183c)

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23009 / May 29, 2014 Securities and Exchange Commission v. Richard K. Olive and Susan L. Olive, Civil Action No. 2:13-civ-14047 (S.D. Fla.); Securities and Exchange Commission v. William G. Reeves, Esq., Civ. No. 2:13-cv-14048 (S.D. Fla.) Husband and Wife Agree to $2 Million Settlement in Florida-Based Charity Fraud Case The Securities and Exchange Commission today announced that a husband and wife in Florida charged last year with defrauding seniors through a purported charitable organization have agreed to pay more than $2 million and be barred from the securities industry. The SEC filed its enforcement action in February 2013 against Richard and Susan Olive and their Tallahassee-based entity We The People Inc. At the SEC's request, the U.S. District Court for the Southern District of Florida subsequently appointed a receiver who has recovered approximately $60 million in investor funds. The SEC also charged We The People's former in-house counsel, who entered into a cooperation agreement with the agency. As a result of the significant assistance provided by William Reeves in the case, the SEC has decided not to seek a financial penalty against him. The settlement, which has been approved by the court, requires Richard Olive to pay $1,054,131 in disgorgement and a $1,054,131 penalty. Susan Olive is required to pay $45,655 in disgorgement and a $150,000 penalty. Richard and Susan Olive consented to a final judgment providing permanent injunctive relief under Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5. In a related administrative proceeding, the Olives agreed to be barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization or from participating in an offering of penny stock. The SEC's investigation was conducted by Michael Cates and Ian Karpel in the Denver Regional Office. The SEC's litigation against the Olives was led by Dugan Bliss and Nicholas Heinke.

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