H&R Block Settles Suit Over Olde Discount<@SM>Brokerage

Published May 17, 2001, 1:00 a.m. EDT

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Updated August 27, 2020, 3:49 a.m. EDT

1 Min Read

- KANSAS CITY, Mo. (05/17/01) - Tax preparer H&R Block Inc. said itagreed to pay $21 million to settle a 1996 fraud lawsuit againstOlde Discount Brokerages, a former deliver of brokerage services tohundreds of credit unions which Block acquired in 1999. The suitalleges the Olde defrauded investors by pushing them into buyingrisky nontraditional stocks and misrepresenting fee and commissionsfor brokers. Olde's founder Ernest Olde, and several top executivesagreed to pay more than $5 million in civil payments 1998 to settlefraud allegations. The suit was filed by 1,600 Olde customers inArizona. Block has since renamed the unit H&R Block FinancialAdvisors.

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