 UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
LITIGATION RELEASE NO. 16849 / January 2, 2001
Securities
and Exchange Commission v. Benjamin Franklin Cook
et al.
#3-99CV05701-R, USDC, NDTX (Dallas Division)
On
December 20, 2000, the Honorable Jerry Buchmeyer,
U.S. District Judge, Northern District of Texas,
entered a Final Judgment as to Relief Defendant
C. Kelly Olsen. The Final Judgment orders Olsen
to pay disgorgement in the amount of $1,827,933,
plus prejudgment interest in the amount of $333,990.
In
its Complaint, filed March 16, 1999, the Commission
alleged that Olsen was unjustly enriched as a
result of his participation in a fraudulent Ponzi
scheme involving the offer and sale of nonexistent
"prime bank" securities. The fraudulent
scheme, developed and operated chiefly by Defendant
Benjamin Franklin Cook, doing business as Dennel
Finance Limited, raised more than $45 million
from approximately 300 investors throughout the
United States. Judge Buchmeyer previously entered
a final judgment against Cook enjoining him from
further violations of the federal securities laws,
ordering him to pay disgorgement in the amount
of $36,724,494 plus prejudgment interest of $5,616,807,
and imposing a civil penalty of $110,000 on him.
Cook was also indicted August 30, 2000 by an Arizona
grand jury on 37 counts of racketeering, fraud
and theft in connection with the Dennel scheme.
Since
May 10, 2000, Olsen had been incarcerated at Seagoville
Federal Detention Center in Seagoville, Texas,
after Judge Buchmeyer issued a contempt order
against him for violating the Court's orders freezing
Olsen's assets and requiring him to turn assets
over to a court-appointed receiver. On December
12, 2000, Olsen finally purged himself of contempt
by providing the Commission and the receiver with
a detailed statement, under oath, concerning his
present assets and his use of Dennel investor
funds. Simultaneously with the entry of the Final
Judgment against Olsen, Judge Buchmeyer issued
an order releasing Olsen from incarceration.
Unscrupulous
promoters continue to victimize the public with
Prime Bank schemes. Investors are advised to access
the Commission's "Prime Bank" Investor
Alert which provides tips on how to avoid being
a victim of these scams. The investor alert can
be found on the Commission's web site, at www.sec.gov/pbank/pbnkhome.htm.
from:
http://www.sec.gov/litigation/litreleases/lr168849.htm
UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
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.
from:
http://www.sec.gov/litigation/litreleases/lr16538.htm
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