Court finds Lighthouse Events used ministry funds to repay expensive short-term loans instead.
A Christian concert promoter has been ordered to pay almost $5 million for misleading investors and misusing funds that were supposed to go toward events that “spread the message of Christ.”
A United States federal court issued a summary judgment against Lighthouse Events and its founder Jeffrey E. Wall this week, finding Wall and his organization had “fraudulently rais[ed] more than $3 million in unregistered offerings from approximately 145 investors.”
Lighthouse books Christian acts at churches and venues across New England. Last year’s lineups included Needtobreathe, Danny Gokey, for King and Country, Sanctus Real, and Kirk Cameron. The company drew in financial partners by inviting them to help spread the gospel through their shows, promising to pay back the investment plus 20 percent after the events.
The money was supposed to go to pay deposits on summer festivals. The Securities and Exchange Commission (SEC) filed a civil complaint accusing Lighthouse Events of fraud in April 2019.
“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,’” according to the SEC. “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.”
After 20 years working in Christian radio, Wall started Lighthouse Events in 2008 and put on more than 350 concerts within a year, growing to partner with more than 1,000 churches. In additional to individual shows and regional tours, Lighthouse previously put on festivals like the River ...
from Christianity Today Magazine https://ift.tt/2yug2x7
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