(HedgeCo.Net) A final judgment has been obtained against promoter Jeffrey E. Wall, of Freeport, Maine, and his business, The Lighthouse Events LLC.
The SEC charged Wall and Lighthouse in April 2019 with operating an egregious community-based financial fraud related to Christian music concerts and festivals. The judgment finds Wall and Lighthouse liable for fraudulently raising more than $3 million in unregistered offerings from approximately 145 investors, many of whom shared Wall’s religious views. Wall had promised investors that their funds would be used solely to promote and host Christian music concerts and festivals and that their investments were “secured” and “guaranteed.” In reality, Wall and Lighthouse used investor funds for a variety of other expenses, including payment of Lighthouse’s existing debt and payments to earlier investors.
“We naturally tend to trust those who share religious or cultural affiliations, but this can leave people vulnerable to investment fraud,” said Paul Levenson, Director of the SEC’s Boston Regional Office. “We encourage investors to understand the important details of the investment, such as the use of funds and the risk of loss.”