SEC Settles Charges in We the People Charity Fraud Case By: Brenda Hamilton Attorney
May 29, 2014, the Securities and Exchange Commission announced that a Florida husband and wife were charged last year with defrauding seniors through a purported charitable organization and 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.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. For more information about going public and the rules and regulations affecting the use of Rule 144, Form 8K, crowdfunding, FINRA Rule 6490, Rule 506 private placement offerings and memorandums, Regulation A, Rule 504 offerings, SEC reporting requirements, SEC registration statements on Form S-1 , IPO’s, OTC Pink Sheet listings, Form 10 OTCBB and OTC Markets disclosure requirements, DTC Chills, Global Locks, reverse mergers, public shells, direct public offerings and direct public offerings please contact Hamilton and Associates at (561) 416-8956 or [email protected]. Please note that the prior results discussed herein do not guarantee similar outcomes.
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