SEC bars faith-based advisor who sold phony promissory notes

A Tennessee-based financial advisor and ordained minister on Wednesday was barred from the securities industry by the Securities and Exchange Commission, which had charged the advisor, Donald A. Wright, last September with defrauding several investors using a “faith-based” investment model to seek out Christian customers. 

Wright, 54, “primarily targeted Christian clients” by promoting a “faith-based” approach to investing, according to the SEC’s charges.

This week, he was barred from the securities industry and his firm, Retirement Specialty Group Inc., had its registration revoked by the commission, according to administrative orders from Wednesday.

A resident of Cookeville, Tennessee, Wright could not be reached Thursday to comment.

Wright and his firm fraudulently sold more than $2.4 million of promissory notes, according to the SEC.

“In selling the notes, Wright and Retirement Specialty Group made material misrepresentations and omissions concerning the nature and safety of the investments, the planned use of proceeds, and his relationships with the issuers,” the SEC stated. “Wright also failed to disclose multiple conflicts of interest and misappropriated client assets. After defrauding his clients, Wright repeatedly misled them about the status of their investments and repayments.”

Wright was registered with four broker-dealers between 2008 and 2015, according to BrokerCheck, before opening Retirement Specialty Group, an SEC registered RIA.

In 2015, Wright was “permitted to resign” from his last broker-dealer, Silver Oak Securities Inc., due to “failures to follow firm procedures regarding advertising,” according to BrokerCheck.

Wright sold the $2.4 million in fraudulent promissory notes from 2021 to 2023, according to BrokerCheck. He raised the money, at least in part, to support his efforts to acquire a faith-based media marketing company.

“Specifically, several entities told Wright that they could help him secure financing for this acquisition, but insisted that he first transfer certain amounts to them as a prerequisite,” according to Wright’s BrokerCheck profile.

“Lacking these funds himself, Wright generated the required capital by having his advisory clients and at least one other investor purchase promissory notes supposedly issued by these entities, or the note issuers,” the BrokerCheck profile read.