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U.S. Securities and Exchange Commission

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.