The Securities and Exchange Commission filed Thursday an enforcement action in federal court in Portland against Freeport concert promoter Jeffrey Wall and his business The Lighthouse Events.
The complaint states Wall and his company raised the money from about 145 investors from January 2014 to October 2018.
The complaint alleges the promoter falsely said investors’ funds would only be used to promote and house Christian music concerts and festivals.
But federal regulators claim funds instead covered other expenses such as paying existing debt.
The complaint says Wall failed to disclose the company’s deteriorating financial condition from declining ticket sales and growing debt from short-term loans.
Wall didn’t immediately respond to request for comment.