SEC v. William Whelan, No. LR-19512, Eastern District of California (Dec. 22, 2005) — Press Release
raw: William Whelan
William Whelan, No. 3:99-CV-571 (Dec. 22, 2005)
William Whelan, a licensed insurance agent, pled guilty to three counts of perjury for falsely denying under oath his involvement in selling the Resource Development International Ponzi scheme during a 2000 SEC deposition, obstructing the investigation into a $98 million fraud that targeted over 1,300 investors with fake prime bank securities.
William Whelan, a licensed insurance agent, pled guilty to three counts of perjury for lying under oath during a 2000 SEC deposition related to the Dennel Finance and Resource Development International (RDI) prime bank fraud schemes. He falsely claimed he had never heard of RDI, never sold its securities, and never received commissions from it—despite evidence he had actively promoted RDI’s fraudulent investment program promising 48% to 1,220% annual returns and collected commissions from over 1,300 investors who lost approximately $98 million. Whelan’s perjury obstructed the SEC’s investigation into the broader fraud network, exposing him to up to 15 years in prison and $750,000 in fines, though no sentencing date had been set at the time of the litigation release.
William Whelan, a licensed insurance agent, pled guilty to three counts of perjury in June 2005 for lying under oath during a August 2000 SEC deposition related to the Dennel Finance and Resource Development International (RDI) prime bank fraud schemes. Although not a defendant in the original SEC v. Cook case, Whelan was identified as a facilitator who received commissions from selling Dennel’s fraudulent securities and later actively promoted the nearly identical RDI scheme, which raised approximately $98 million from more than 1,300 investors nationwide by falsely claiming participation in high-yield bank trading programs with returns of 48% to 1,220%. During his deposition, Whelan falsely testified that he had never heard of RDI, never sold its products, and never seen its promotional documents—contrary to evidence showing he had used RDI materials and collected commissions from its sales for months prior. His perjury directly obstructed the SEC’s efforts to uncover the full scope of the fraud network, which included two nearly identical Ponzi schemes operating under different names. The U.S. Attorney’s Office charged him with perjury, obstruction of justice, and false statements, but he ultimately pleaded guilty to the three perjury counts, each carrying a potential 5-year prison term and $250,000 fine, for a maximum of 15 years and $750,000 in penalties. No sentencing date had been scheduled at the time of the December 2005 litigation release, but his admission confirmed his central role in enabling the fraud beyond his initial involvement with Dennel. The case underscored how fraud facilitators often attempt to conceal their roles through deception under oath, complicating regulatory enforcement efforts.
Extracted insights
- $98.00M $98 million $10M–$100M
- $750K $750,000 $100K–$1M
- agency Securities and Exchange Commission
- organization Securities and Exchange Commission
- Securities and Exchange Commission announced that on Nov
- Prime Bank Fraud Participant pleads guilty to Perjury
U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. Litigation Release No. 19512 / December 22, 2005 Securities and Exchange Commission v. Benjamin Franklin Cook, et al, Civil Action No. 3:99-CV-571-R, USDC, NDTX (Dallas Division) Securities and Exchange Commission v. Resource Development International, LLC, et. al., Civil Action No. 4-97CV-1018Y, USDC, NDTX (Dallas Division) United States v. William Whelan, Criminal Action No. 05CR00226OWW, USDC, EDCA (June 30, 2005) Prime Bank Fraud Participant Pleads Guilty to Perjury During SEC Litigation The Securities and Exchange Commission announced that on November 28, 2005, William Whelan, of Visalia, California, pled guilty to three counts of perjury in the United States District Court for the Eastern District of California. Whelan was named in a seven count indictment charging him with perjury, obstruction of justice and providing false statements in connection with a deposition provided to the Commission in the SEC v. Cook matter. The SEC v. Cook case involved an emergency action brought by the Commission in March 1999 to halt an ongoing Ponzi scheme centered around the offer and sale of non-existent prime bank securities issued by Dennel Finance Limited. After obtaining a TRO to halt the Dennel scheme, the Commission staff learned that certain individuals affiliated with Dennel were conducting a nearly identical fraud under a new name, Resource Development International, LLC. The Commission brought a second emergency action in March 2002 against Resource Development and others to end the related scheme, alleging that the defendants raised approximately $98 million from more than 1300 investors nationwide using fraudulent statements regarding the purported investment in bank trading programs and annual rates of return of 48 to 1220 percent.. William Whelan was not a defendant in the SEC v. Cook matter, but was named as a defendant in the SEC v. Resource Development litigation. Whelan, a licensed insurance agent, was sued by the Court-appointed Receiver in the SEC v. Cook case after he was identified as "facilitator" who received commissions from the offer and sale of the fraudulent Dennel program. The Commission and Receiver jointly deposed Whelan in SEC v. Cook in August 2000 and Whelan was questioned about his involvement in other high-yield, prime bank programs, including, specifically, the Resource Development program. In the plea agreement, Whelan admits that, during his deposition, he testified falsely numerous times about his role in the Resource Development program. Whelan testified that he had never received any commissions for offering or selling any high-yield bank debenture-type program other than the Dennel program. Whelan further testified that he had never seen documents relating to the Resource Development program. In addition, Whelan testified that he had never heard of an entity called "Resource Development." In the plea agreement, Whelan admits that, contrary to his testimony, he had, in fact, been offering and selling the fraudulent Resource Development program for several months prior to his testimony, had received commissions for selling the Resource Development investment, and had utilized the documents disseminated by Resource Development in the course of selling the program. The three perjury counts subject Whelan to a potential prison sentence of as many as 15 years and a potential fine of as much as $750,000. No sentencing date has been scheduled. For more information see the following Litigation Releases: 16089 (March 17, 1999); 16112 (April 14, 1999); 16341 (October 25, 1999); 16538 (May 4, 2000); 16849 (January 2, 2001); 16863 (January 19, 2001); 17438 (March 26, 2002); 17635 (July 30, 2002); 18217 (July 7, 2003); 18418 (October 17, 2003); 19087 (February 17, 2005); 19118 (March 3, 2005); 19295 (July 7, 2005).
U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. Litigation Release No. 19512 / December 22, 2005 Securities and Exchange Commission v. Benjamin Franklin Cook, et al, Civil Action No. 3:99-CV-571-R, USDC, NDTX (Dallas Division) Securities and Exchange Commission v. Resource Development International, LLC, et. al., Civil Action No. 4-97CV-1018Y, USDC, NDTX (Dallas Division) United States v. William Whelan, Criminal Action No. 05CR00226OWW, USDC, EDCA (June 30, 2005) Prime Bank Fraud Participant Pleads Guilty to Perjury During SEC Litigation The Securities and Exchange Commission announced that on November 28, 2005, William Whelan, of Visalia, California, pled guilty to three counts of perjury in the United States District Court for the Eastern District of California. Whelan was named in a seven count indictment charging him with perjury, obstruction of justice and providing false statements in connection with a deposition provided to the Commission in the SEC v. Cook matter. The SEC v. Cook case involved an emergency action brought by the Commission in March 1999 to halt an ongoing Ponzi scheme centered around the offer and sale of non-existent prime bank securities issued by Dennel Finance Limited. After obtaining a TRO to halt the Dennel scheme, the Commission staff learned that certain individuals affiliated with Dennel were conducting a nearly identical fraud under a new name, Resource Development International, LLC. The Commission brought a second emergency action in March 2002 against Resource Development and others to end the related scheme, alleging that the defendants raised approximately $98 million from more than 1300 investors nationwide using fraudulent statements regarding the purported investment in bank trading programs and annual rates of return of 48 to 1220 percent.. William Whelan was not a defendant in the SEC v. Cook matter, but was named as a defendant in the SEC v. Resource Development litigation. Whelan, a licensed insurance agent, was sued by the Court-appointed Receiver in the SEC v. Cook case after he was identified as "facilitator" who received commissions from the offer and sale of the fraudulent Dennel program. The Commission and Receiver jointly deposed Whelan in SEC v. Cook in August 2000 and Whelan was questioned about his involvement in other high-yield, prime bank programs, including, specifically, the Resource Development program. In the plea agreement, Whelan admits that, during his deposition, he testified falsely numerous times about his role in the Resource Development program. Whelan testified that he had never received any commissions for offering or selling any high-yield bank debenture-type program other than the Dennel program. Whelan further testified that he had never seen documents relating to the Resource Development program. In addition, Whelan testified that he had never heard of an entity called "Resource Development." In the plea agreement, Whelan admits that, contrary to his testimony, he had, in fact, been offering and selling the fraudulent Resource Development program for several months prior to his testimony, had received commissions for selling the Resource Development investment, and had utilized the documents disseminated by Resource Development in the course of selling the program. The three perjury counts subject Whelan to a potential prison sentence of as many as 15 years and a potential fine of as much as $750,000. No sentencing date has been scheduled. For more information see the following Litigation Releases: 16089 (March 17, 1999); 16112 (April 14, 1999); 16341 (October 25, 1999); 16538 (May 4, 2000); 16849 (January 2, 2001); 16863 (January 19, 2001); 17438 (March 26, 2002); 17635 (July 30, 2002); 18217 (July 7, 2003); 18418 (October 17, 2003); 19087 (February 17, 2005); 19118 (March 3, 2005); 19295 (July 7, 2005).