The SEC bars Logos Wealth Advisors founder, fund manager for fraudulently raising money

The Securities and Exchange Commission has barred Logos Wealth Advisors founder Paul Mata and his fund manager for fraudulently raising more than $14 million from investors. David Kayatta joined Mr. Mata at investment advisory firm Logos Wealth Advisors in California in December 2009, becoming a manager of two unregistered investment funds founded by Mr. Mata, Secured Capital Investments and Logos Real Estate Holdings, according to an SEC order Wednesday. The SEC alleged that starting in 2008, Mr. Kayatta and Mr. Mata raised more than $14 million from more than 100 investors in the funds, which were never registered with the regulatory agency. They promised guaranteed returns, misused investors' money and failed to disclose their disciplinary history, according to SEC documents. Mr. Mata attracted investors using online videos and investment seminars promising “Indestructible Wealth,” the SEC said in a separate document Wednesday. He also gave church group presentations that promised “Finances God's Way,” the SEC said. Mr. Mata formed Logos Wealth Advisors after he was fired from Ameriprise Financial Inc. in March 2009 for violating company policies, including recommending that clients take out risky loans to finance investments and presenting unapproved seminars. Operating Secured Capital Investments, which Mr. Mata founded in 2008, was another violation of Ameriprise's policy as it was a competitor, according to SEC documents. Mr. Mata also founded Logos Lifetime University to provide financial planning seminars and investment advisory services for fees ranging from several hundred to tens of thousands of dollars, according to the SEC's complaint last year. In 2010, the Office of Nevada Secretary of State ordered Mr. Kayatta to cease-and-desist from soliciting investors in unregistered securities and from engaging in unlicensed investment advisory conduct, according to the SEC. He had previously held securities licenses. The Financial Industry Regulatory Inc.'s BrokerCheck shows that he was registered with Ameriprise from 1999-2007. Efforts to reach Mr. Kayatta and Mr. Mata for comment weren't immediately successful.