The SEC charged a husband and wife who raised
millions of dollars selling investments for a purported charitable organization
in Tallahassee, Fla., while defrauding senior citizens and significantly
exaggerating the amount of contributions actually made to charity.
The SEC alleges that after the couple were hired at We The
People Inc., the organization obtained $75 million from more than 400 investors
in Florida, Colorado, and Texas among more than 30 states across the country by
selling an investment product they described as a charitable gift annuity
(CGA). However, the CGAs issued by We The People differed in several ways from
CGAs issued legitimately, namely that they were issued primarily to benefit the
couple and other third-party promoters and consultants. Only a small amount of
the money raised was actually directed to charitable services. Meanwhile the couple
received more than $1.1 million in salary and commissions, and they also siphoned
away investor funds for their personal use.
The SEC further alleges that
the couple lured elderly investors with limited investing experience into the
scheme by making a number of false representations about the purported value
and financial benefits of We The People’s CGAs. The Olives also lied about the
safety and security of the investments.
“The [couple] raised millions
from senior citizens by claiming that We The People’s so-called CGAs provided
attractive financial benefits and were re-insured and backed by assets held in
trust,” said Julie Lutz, Associate Director of the SEC’s Denver Regional
Office. “Investors were not given the full story about the true value and
security of their investments.”
For more information on the charge, visit SEC Charges Husband and Wife in Florida with Defrauding Seniors Investing in Purported Charity.
