Wednesday, October 9, 2024
HomeLife InsuranceSEC Prices Pastor-Turned-Advisor With $2.4M Fraud

SEC Prices Pastor-Turned-Advisor With $2.4M Fraud


What You Must Know

  • The advisor allegedly bought 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 strategy to Christian shoppers by his registered funding advisory faces Securities and Change Fee civil prices that he bought 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 criticism 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 useful and bought 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 relating to the character and security of the investments.

Wright falsely informed traders — a minimum of 5 advisory shoppers 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 important 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 concerning the notes’ reimbursement standing, the criticism alleges. He raised this cash, a minimum of partly, to assist his efforts to accumulate a faith-based media advertising and marketing firm, the criticism alleges.

After one word defaulted, Wright fabricated an $8.1 million wire-transfer affirmation to falsely guarantee a shopper that reimbursement was forthcoming, the SEC alleges.

The criticism additionally alleges that Wright didn’t disclose his enterprise and monetary ties with word issuers, creating conflicts of curiosity, and contends he obtained investor funds by creating and utilizing pretend, cast promissory notes.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -
Google search engine

Most Popular