Faith-based advisor and minister defrauds clients in Tennessee, SEC charges

A Tennessee-based financial advisor and ordained minister on Tuesday settled charges with the Securities and Exchange Commission that he defrauded several investors using a “faith-based” investment model to seek out Christian customers.

The financial advisor, David Anthony Wright, “primarily targeted Christian clients” by promoting a “faith-based” approach to investing, according to the SEC.

It was anything but spiritual, according to the SEC. Wright and his firm, Retirement Specialty Group from June 2021 to July 2023 “allegedly recommended and sold over $2 million in fraudulent promissory notes to at least five advisory clients and one other investor,” according to the SEC.

Some of the notes promised monthly interest of up to 20%, according to the SEC, and “Wright allegedly misled investors concerning the nature and safety of investing in the notes.”

Retirement Specialty Group, based in Cookeville, Tenn., has $26 million in assets, according to the firm’s Form ADV. In May 2024, Creekmur Wealth Advisors, a distinct and separate entity, purchased certain assets from Retirement Specialty Group. An employee at Creekmur Wednesday morning said that Wright had retired from the industry.

In a video posted on Youtube.com, Wright lists the problems he believes face Christian investors. He also that he was an ordained minister, hosted a radio program, and called himself the Investment Preacher

“Every day Christians are unaware that their investment are helping fund abortions, same sex marriages, and other agenda’s that go against God’s word,” Wright said. “Closing our eyes to sin just because it is buried within our investment portfolios is not acceptable.”  

“People are very susceptible when advisors talk investments with a religious or other bent,” said Max Schatzow, an industry attorney. “Many investors get taken advantage of every day in this country.”

“And there are many psychological factors that go into such a fraud,” he added. “This is a core function of the SEC and where its resources should be allocated.”

Wright and Retirement Specialty Group agreed to the SEC’s settlement without admitting to or denying the SEC’s allegations. Wright agreed to being barred as an officer and director at firms as well as being barred from selling securities, with certain exceptions.

According to his BrokerCheck profile, Wright was “permitted to resign” in 2015 from Silver Oak Securities Inc. after facing an allegation that he failed “to follow procedures regarding advertising.”

According to the SEC’s complaint,  Wright allegedly claimed that: the notes were secured by real estate; investments in the notes were safer and more stable than investments in the stock market; and Wright personally had invested substantial funds in the notes.

All of these claims were false, according to the SEC, and after selling the notes, Wright “misappropriated most of the note proceeds for his own personal benefit and then lied to the investors about the repayment status of the notes.”

“After one of the notes defaulted, Wright allegedly fabricated an $8.1 million wire-transfer confirmation that he gave to a client to falsely assure him that repayment of his note was forthcoming,” according to the SEC.

“Wright also allegedly failed to disclose his business and financial ties with the issuers of the notes, which created conflicts of interest,” according to the SEC.