SEC charges Mainer with defrauding investors in $3M Christian concert scheme
The Securities and Exchange Commission filed an enforcement action Thursday in federal court in Portland charging Freeport-area concert promoter Jeffrey E. Wall and his business, The Lighthouse Events LLC, with defrauding more than 100 investors he solicited to become "financial partners."
According to the SEC's complaint, from approximately January 2014 through October 2018, Wall and Lighthouse raised more than $3 million from approximately 145 investors to promote Christian music concerts and festivals in New England.
As alleged, Wall and Lighthouse falsely told potential investors, among other things, that their funds would be used solely to promote and host Christian music concerts and festivals, claiming that repayment of the investment was “secured” and “guaranteed” within one year of the initial investment. Instead, they used investor funds for other expenses, including payment of Lighthouse's existing debt and payments to earlier investors using later investors' money.
According to the complaint, Wall and Lighthouse also failed to disclose material information to potential investors about Lighthouse's deteriorating financial condition from declining ticket sales and its growing high-interest debt from short-term loans.
Wall and Lighthouse have failed to repay approximately $1.6 million of the monies fraudulently collected from investors, the SEC alleges.
The SEC's complaint alleges that Wall and Lighthouse violated the antifraud provisions and registration provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.
The SEC seeks permanent injunctions, civil penalties and repayment plus prejudgment interest against Wall and Lighthouse.
The SEC's case is being handled by David London, Gretchen Lundgren, John McCann, and Michele T. Perillo of the Boston regional office.
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