SEC sanctions former Cookeville financial advisor

After a Cookeville-based financial advisor and ordained minister settled charges of fraud with the Securities and Exchange Commission, the SEC has now formally revoked his company's registration as an investment advisor.

The SEC also barred the advisor, Donald Anthony Wright, "from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization."

The SEC had alleged that Wright and his company defrauded several investors using a "faith-based" investment model to seek out Christian customers.

According to an order published this week, the Commission's complaint alleged that "Wright and Retirement Specialty Group misused and misappropriated investor funds obtained from clients and at least one non-client through the fraudulent offer, recommendation, and sale of fraudulent promissory notes."

"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 said. "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."

According to a September 2024 Herald-Citizen story, between approximately June 2021 and July 2023, Wright and Retirement Specialty Group allegedly recommended and sold over $2 million in fraudulent promissory notes to at least five advisory clients and one other investor. In recommending and selling these notes, some of which promised monthly interest of up to 20%, Wright allegedly misled investors concerning the nature and safety of investing in the notes.

For example, 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. According to the complaint, all of these claims were false.

The complaint further alleged that, 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.

Retirement Specialty Group had offices located on Perimeter Park Drive in Cookeville, but the company was reportedly purchased in May 2024 by Creekmur Wealth Advisors, which said at the time that it was "not affiliated with Retirement Specialty Group nor its owner, Donald Anthony Wright."