SEC sues Hidden Wealth podcaster over investment fraud

Out of Lake Mary, Charles Oliver broadcast his Hidden Wealth Radio and podcast to give advice to baby boomers on how to manage their money in retirement.

Now, Oliver is being accused of convincing many of his listeners to make risky investments that cost them their savings. The SEC is suing Oliver for improperly selling $52 million in risky oil and gas investments to 50 people.

According to the federal complaint, the investment advisor broke the law by not registering as a securities broker. He’s also facing suit for not disclosing his conflict of interest about the money he was making from the securities his listeners bought, per the complaint filed late last week in the Middle District of Florida’s Orlando division.

Many of his faithful listeners lost hundreds of thousands of dollars from their bad investments while Oliver got paid at least $4.3 million, the lawsuit said.  

“As an investment adviser, (Oliver) owed his clients a fiduciary duty of utmost good faith, undivided loyalty, and care to make full disclosure to them of all material facts, as well as a duty to act in their best interests and not to act in his own interests to the detriment of his clients,” the lawsuit said.

Messages for comment to Oliver’s business were not returned Monday. The SEC declined to comment.

Two companies, Resolute and Homebound, sold the securities and made misleading statements to investors about gas productions and tax benefits, according to the SEC lawsuit. 

Another company, Georgia-based Beacon Global Group, began partnering with Resolute in 2018 and contracting with referral agents to find more investors — which is how Oliver came into play, the SEC said. Beacon Global paid Oliver a monthly fee plus commission from the sales he generated.

“He frequently touted his investment advisory services through his Hidden Wealth Radio program. Oliver discussed generally tax-minimizing investment strategies, and told his listeners that if they were interested, they should contact him directly for additional information,” the lawsuit said.

“Oliver also hosted investment presentations in various locations including Orlando, Florida. Some potential investors attended these presentations via Zoom Video Meeting. At the presentations, Oliver spoke generally about oil and gas investing and introduced the main presenters — Stephan Toth of Homebound and Thomas Powell of Resolute.”

Oliver told investors they would double their money in three years as he touted Resolute and Homebound’s unique technology that could make old gas wells lucrative.

To close the deal, Oliver, 54, of Lake Mary, said he was a big investor in gas and oil securities and that his son interned with Resolute.

The six unidentified victims in the complaint shared several things in common. They were all senior citizens, big fans of Oliver’s show and lost thousands of dollars in their investments.

A Florida man referred to only as Investor D tuned into Hidden Wealth Radio weekly for years. The retired senior transferred most of his 401(k) to an IRA and ended up investing $550,000 in oil and gas securities after Oliver pitched him on the investments that Oliver claimed brought in at least 80% returns in 18 to 32 months, according to the lawsuit.

Oliver also charged a $2,500 annual fee for his advisor services, though he eventually waived the fee because the Florida man complained about not getting any returns back. The Florida man lost his entire investment, save for $10,000, the lawsuit said.

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