The U.S. Securities and Exchange Commission has taken legal action against a Freeport concert promoter and his business, alleging Jeffrey E. Wall and Lighthouse Events defrauded nearly 150 people out of more than one-million dollars.
SEC Boston Regional Director Paul Levenson says Wall told investors he would use their money to promote and host Christian music concerts and festivals. Levenson says Wall claimed the investment was guaranteed, and they would see 10 to 25 percent returns within 12 months.
“What Wall didn't tell investors that Lighthouse was deep in debt and that much of their investment money was going to pay off high interest loans or to pay off prior investors,” Levenson says.
The complaint indicates that Wall and Lighthouse raised more than $3 million from 145 investors, but only repaid about half that amount. Investors included self-identified Christians who were attracted to the Lighthouse mission.
The SEC is seeking permanent injunctions, civil penalties and repayment plus interest for what Levenson describes as a case of affinity fraud.
Calls to Wall were not returned by airtime.