SEC Accuses Florida Radio Host of $52M Oil and Gas Securities Scheme
A Florida-based insurance agent, Charles D. Oliver, is at the center of a U.S. Securities and Exchange Commission complaint alleging he illegally sold approximately $52 million in unregistered oil and gas securities to around 50 retail investors, including retired seniors. The complaint, filed in federal court, accuses Oliver of acting as an unregistered broker and investment adviser, and of failing to disclose a significant financial conflict of interest.
According to the complaint, Oliver used his radio show and podcast, “Hidden Wealth Radio,” to attract a large audience and solicit potential clients for his business: Hidden Wealth Solutions. The complaint states that while presenting himself as a financial and tax adviser, Oliver steered clients toward high-risk oil and gas investments sponsored by Resolute Capital Partners LLC and Homebound Resources LLC.
The core of the allegations centers on Oliver’s failure to disclose his compensation. The complaint states that Oliver received over $4.3 million in transaction-based fees from Resolute for the sales. This compensation was paid through an intermediary, Beacon Global Group Inc., and was allegedly never disclosed to his advisory clients, a direct violation of his fiduciary duty.
Instead of acting as a simple “referral agent,” as his agreement with Beacon Global purported, Oliver is accused of actively participating in the sale of these securities. He reportedly gave detailed presentations, recommended portfolio allocations, and discussed the supposed tax benefits of the investments. He also allegedly made misleading statements, telling clients he was a large investor and on the board of Resolute, neither of which were true.
Many of the investors who purchased these securities have since lost their money. The complaint notes that the sponsoring entities, Resolute and Homebound, failed to make interest payments or return principal to investors, and only made “de minimis” distributions.
Multiple examples of Oliver’s alleged fraud were included in the complaint.
In one, a retired senior citizen from Arizona – referred to as Investor A – was a listener of Oliver’s radio program. After hearing Oliver’s discussions on tax avoidance and retirement planning, and doing some online research on his website, Investor A contacted Oliver and his team. He provided them with his financial information, and Oliver presented him with a “blueprint plan” for his retirement investments.
Trusting Oliver as his investment adviser, Investor A transferred money from his brokerage account and bank account for Oliver to manage. Oliver charged him a $1,500 annual fee and a 1.5% fee on his brokerage assets. Oliver subsequently recommended that Investor A invest in the oil and gas securities. He showed Investor A charts and projections, allegedly claiming that the investments would “double every 12-18 months.” Oliver’s main selling point was the tax benefits of the investments. He also allegedly told Investor A that he was a personal investor in the securities and that he served on the board of directors for Resolute, both of which were false statements according to the complaint.
Based on Oliver’s advice, Investor A invested a total of $410,000 in one of the oil and gas offerings in February 2020. The complaint states that Oliver never disclosed that he was receiving compensation for the sale of these securities. To date, Investor A has never received any of his money back from his investment.
In another, a retired senior citizen from Connecticut, referred to as Investor B, first heard Oliver on his radio show. Intrigued by Oliver’s discussions on tax avoidance and retirement planning, she contacted him in late 2019 to seek his advisory services. After a few calls and filling out questionnaires on her finances and risk tolerance, she hired Oliver as her investment adviser in early 2020. According to the complaint, Investor B trusted Oliver, who had convinced her of his advisory expertise.
Oliver then recommended she invest in the oil and gas securities, claiming they offered significant tax benefits. He also allegedly told her that his own son was an intern at the company, giving the impression of an inside connection. Based on this advice, Investor B invested a total of $350,000 in two separate oil and gas offerings in January and March 2020 and never received any of her money back. Like Investor A, the complaint states that Oliver never disclosed to Investor B that he was receiving compensation for recommending these investments.
The lawsuit charges Oliver with multiple violations of federal securities laws, including:
- Selling unregistered securities – The oil and gas offerings were not registered with the SEC and did not qualify for an exemption;
- Acting as an unregistered broker – Oliver was never registered with the SEC in any capacity; and
- Breaching fiduciary duty – He failed to disclose the financial conflict of interest to his advisory clients, who trusted his investment advice.
The SEC is seeking a permanent injunction against Oliver to prevent him from participating in the securities industry, as well as an order for him to disgorge his ill-gotten gains and pay civil money penalties.
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