Paul Mata, the founder of Logos Wealth Advisors, has been barred by the U.S. Securities and Exchange Commission. Mata and fund manage David Kayatta, whom the SEC has also barred, are accused of fraudulently raising over $14M in investor funds.
Mata drew in investors through investment seminars and online videos that came with the promise of “Indestructible Wealth.” During presentations to church groups, he touted “Finances God’s Way.”
Kayatta was the manager of two unregistered investment funds while at Logos Wealth Advisors. According to the Commission, beginning in 2008, the two men raised this money from over 100 investors in the unregistered funds. Kayatta and Mata promised guaranteed returns, did not make any disciplinary history known, and misused investor money.
In the order against him, the SEC said that Kayatta was responsible for the misleading and false statements in private placement memoranda for the Funds. According to InvestmentNews, in 2010, Kayatta was ordered by the state of Nevada to cease-and-desist from pursuing investors in unregistered securities and taking part in investment advisory conduct without the proper licensing.
Mata founded his firm after Ameriprise Financial Inc. (AMP) fired him in 2009 for company policy violations, including presenting seminars that were never approved, recommending that clients take out high risk loans to pay for investments, hiring people without performing the correct background checks, and running competitor Secured Capital Investments while at that firm. At his Logos Lifetime University, Mata offered investment advisory services and financial planning seminars for fees ranging from several hundreds dollars to tens of thousands of dollars. Kayatta was previously registered with Ameriprise.
Our securities lawyers work with investors seeking to recoup their investor fraud losses. Contact Shepherd Smith Edwards and Kantas, LTD LLP today and ask to speak with one of our private placement fraud attorneys.
Read the SEC’s Complaint (PDF)
SEC Bars 2 Advisors Who Said They Managed Money ‘God’s Way’, Think Adviser, September 2, 2016