What You Must Know
- The advisor allegedly offered phony notes in an effort to purchase a faith-based advertising and marketing firm.
A former pastor in Tennessee who promoted a “faith-based” funding method to Christian purchasers by his registered funding advisory faces Securities and Trade Fee civil costs that he offered over $2.4 million in fraudulent promissory notes to a minimum of six folks.
With out admitting or denying the allegations, Donald Anthony Wright, 54, of Cookeville has consented to an injunction completely barring him from shopping for or promoting any safety, with sure exceptions, and to a everlasting bar from serving as a public firm officer or director.
In a civil grievance filed Tuesday in U.S. District Court docket in Tennessee, the SEC alleges Wright and his registered funding advisory agency, Retirement Specialty Group Inc., really helpful and offered the phony notes from June 2021 to July 2023.
In selling and promoting the notes, a few of which promised month-to-month curiosity of as much as 20%, the SEC alleges, Wright, a former senior church pastor, misled traders concerning the character and security of the investments.
Wright falsely instructed traders — a minimum of 5 advisory purchasers and one different particular person — the notes have been secured by actual property, that investing in them was safer and extra steady than inventory market investments, and that he personally had invested vital funds within the notes, the SEC alleges.
After promoting the notes, Wright misappropriated most proceeds for his personal private profit and lied to the traders in regards to the notes’ compensation standing, the grievance alleges. He raised this cash, a minimum of partly, to help his efforts to amass a faith-based media advertising and marketing firm, the grievance alleges.
After one notice defaulted, Wright fabricated an $8.1 million wire-transfer affirmation to falsely guarantee a consumer that compensation was forthcoming, the SEC alleges.
The grievance additionally alleges that Wright didn’t disclose his enterprise and monetary ties with notice issuers, creating conflicts of curiosity, and contends he obtained investor funds by creating and utilizing faux, cast promissory notes.
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