The Securities and Exchange Commission has obtained a final judgment against Christian concert promoter Jeffrey Wall and his business the Lighthouse Events.
The regulator charged Wall and Lighthouse in April 2019 with operating an “egregious community-based financial fraud” related to Christian music concerts and festivals.
The judgment found Wall and Lighthouse liable for fraudulently raising more than $3m (£2.42m, €2.76m) in unregistered offerings from approximately 145 investors, many of whom shared Wall’s purported religious views.
He 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”, the SEC said.
Penalties
On 31 March 2020, US magistrate judge John Rich ordered Wall and Lighthouse to pay, jointly and severally, $1,589,815 in disgorgement of ill-gotten gains, plus $202,056 in prejudgment interest.
He also gave individual civil penalties of $1,589,815 against Wall and $1,589,815 against Lighthouse.
“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.”
