PORTLAND, ME (CelebrityAccess) – Federal regulators are charging Christian concert promoter Jeffrey Wall and his company The Lighthouse Events LLC with defrauding nearly 145 investors of over $3 million, according to the Associated Press.
In a complaint filed in Portland federal court on Thursday, the Securities and Exchange Commission have alleged that Wall falsely told investors that their funds would only be used to promote and house Christian music concerts and festivals while in reality the funds were used to pay off existing debts and earlier investors, reports AP.
The complaint also states that Wall failed to disclose the company’s deteriorating financial condition from declining ticket sales and growing debt from short-term loans.
According to the SEC filing, Wall and Lighthouse have failed to repay roughly $1.6 million of the funds it fraudulently collected from investors between January 2014 through October 2018.
The SEC is seeking permanent injunctions, civil penalties and disgorgement plus interest against Wall and Lighthouse.