Federal regulators have barred two advisors from further work in the industry after they raised over $14 million from 100 investors by promising them "indestructible wealth" and that the advisors managed money in "God's way," according to the Securities and Exchange Commission.
The advisors, Paul Mata and David Kayatta, operated as Logos Wealth Advisors in Southern California. They worked together for the past seven years ago or so, after both were fired by Ameriprise Financial. Mata and Kayatta have lengthy regulatory records, according to FINRA BrokerCheck.
The two sold unregistered investment funds, Secured Capital Investments and Logos Real Estate Holdings.
"Mata falsely promised 'guaranteed' returns, misrepresented SCI's use of proceeds, misused investor funds, failed to disclose his disciplinary history and his control of SCI to his advisory clients, and otherwise engaged in a variety of conduct that operated as a fraud and deceit on investors," the SEC's ruling on Mata stated Wednesday.
The regulator adds that Ameriprise fired Mata in March 2009 for violating company policies by recommending that clients "take out risky loans to finance investments, presenting unapproved seminars, employing individuals without conducting proper background checks and operating SCI as a competing investment company."
