March 30, 2017

The SEC announced fraud charges and an emergency asset freeze obtained against Michigan-based pastor Larry Holley accused of exploiting church members, retirees, and laid-off auto workers who were misled to believe they were investing in a successful real estate business.  The SEC alleges that Holley, pastor of Abundant Life Ministries in Flint, Michigan, cloaked his solicitations in faith-based rhetoric, replete with references to scripture and biblical figures.  According to the SEC’s complaint, which also charges Holley’s company Treasure Enterprise LLC and his business associate Patricia Enright Gray, approximately $6.7 million was raised from more than 80 investors who were guaranteed high returns and told they were investing in a profitable real estate company with hundreds of residential and commercial properties.  In fact, Treasure Enterprise struggled to generate enough revenue from its real estate investments to support the business and make payments to investors.  Additionally, the SEC alleges Gray advertised on a religious radio station based in Flint and singled out recently laid-off auto workers with severance packages to consult her for a “financial increase.”  Gray allegedly promised to roll over investors’ retirement funds into tax-advantaged IRAs and invest them in Treasure Enterprise.  The SEC alleges that no investor funds were deposited into IRAs. SEC

Tagged in: Financial Institution Fraud, Securities Fraud,