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United
States Securities and Exchange Commission
LITIGATION RELEASE
NO. 16538 / May 4, 2000
Securities and Exchange Commission v. Benjamin
Franklin Cook et al.
#3-99CV05701-R, USDC, NDTX (Dallas Division)
On May 1, 2000, Judge Jerry Buchmeyer of the
U.S. District Court for the Northern District
of Texas, Dallas Division, found C. Kelly Olsen
in contempt of Court and issued a bench warrant
for his arrest, fined him $50,000 and struck all
pleadings filed by him denying the Commission's
allegations. Olsen, a resident of Temecula, California,
is expected to be detained by U.S. Marshals and
transported to Dallas where he will be incarcerated.
On March 16, 1999, the Commission brought an
action alleging that Dennel Finance Limited, Benjamin
Franklin Cook and others engaged in a fraudulent
scheme to offer and sell unregistered "prime
bank" securities throughout the United States.
The complaint further alleged that the defendants,
who targeted religious groups and persons investing
retirement funds, cheated more than 100 investors
nationwide of $30 million in non-existent "prime
bank" note programs. On April 2, 1999, the
Court entered a Preliminary Injunction and appointed
a Temporary Receiver to take control of the defendant's
assets for the benefit of investors.
Olsen was named as a relief defendant in the
Dennel action and had been required to provide
an accounting and to turn over certain assets
to the Temporary Receiver. Because of Olsen's
failure to account for certain real and personal
property and his transfer of approximately $500,000,
both in violation of the Preliminary Injunction,
Judge Buchmeyer held Olsen in contempt of Court.
Olsen will join Mr. Cook who was previously incarcerated
for contempt.
http://www.sec.gov/litigation/litreleases/lr16538.htm
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