A husband and wife who raised millions of dollars sellinginvestments for a purported charity have been charged with fraud bythe SEC for allegedly bilking senior citizens across thecountry.

According to the SEC's complaint filed Monday in U.S. DistrictCourt for the Southern District of Florida, after Richard K. Oliveand Susan L. Olive were hired at We The People Inc., theorganization obtained $75 million from more than 400 investors inFlorida, Colorado, and Texas among more than 30 states across thecountry by selling an investment product they described as acharitable gift annuity.

However, the CGAs issued by We The People differed in severalways from CGAs issued legitimately, namely that they were issuedprimarily to benefit the Olives and other third-party promoters andconsultants, the SEC said, adding only a small amount of the money raised wasactually directed to charitable services.

Meanwhile the Olives received more than $1.1 million in salaryand commissions and siphoned away investor funds for their personaluse, according to the SEC.

The SEC further alleged that the Olives lured elderly investors with limited investing experience into thescheme by making a number of false representations about thepurported value and financial benefits of We the People's CGAs.

The Olives also lied about the safety and security of theinvestments, the SEC said. Investors were coaxed to transfer assetsincluding stocks, annuities, real estate, and cash to We The Peoplein exchange for a CGA, according to the SEC complaint.

We The People claimed to operate as a nonprofit organizationwhile it was offering the CGAs from June 2008 to April 2012, theagency said. However, it was not operating as a charity but insteadfor the primary purpose of issuing CGAs and using the proceeds topay substantial sums to the Olives, third-party promoters, andconsultants, the SEC said.

On rare occasions when We The People did actually direct moneyraised toward charitable services, it was insignificant, accordingto the SEC complaint. For instance, the organization made publicstatements that it donated $21.8 million in relief aid to AIDSorphans in Zambia, but the supplies were donated by others and WeThe People merely made a small payment to the third party that wasshipping the supplies, the SEC said.

The SEC's complaint charged the Olives with violations, oraiding and abetting violations, of the antifraud provisions of thefederal securities laws as well as violations of the securities andbroker-dealer registration provisions of the federal securitieslaws. The SEC said it is seeking disgorgement of ill-gotten gainsplus pre- and post-judgment interest and financial penaltiesagainst the Olives.

Separate complaints were filed Monday against We The People aswell as the company's in-house counsel William G. Reeves, the SECsaid. They both agreed to settle the charges without admitting ordenying the allegations. The settlements are subject to courtapproval.

We The People consented to a final judgment that will enable theappointment of a receiver to protect more than $60 million ofinvestor assets still held by the company, according to the SEC.The final judgment also provides for disgorgement of ill-gottengains and provides injunctive relief under the antifraud andregistration provisions of the federal securities laws.

Reeves entered into a cooperation agreement with the SEC, andthe terms of his settlement reflect his assistance in the SEC'sinvestigation and anticipated cooperation in its pending actionagainst the Olives, the SEC said.

Reeves agreed to be suspended from appearing or practicingbefore the SEC for at least five years, and consented to a finaljudgment providing injunctive relief under the provisions of thefederal securities laws that he violated, according to the SEC. Thecourt will determine at a later date whether a financial penaltyshould be imposed against Reeves.

“The Olives raised millions from senior citizens by claiming that We The People's so-called CGAsprovided attractive financial benefits and were re-insured andbacked by assets held in trust,” said Julie Lutz, associatedirector of the SEC's Denver regional office. “Investors were notgiven the full story about the true value and security of theirinvestments.”