The Securities and Exchange Commission charged William "Bill" Bowser, Christopher Ashby, Scott Beynon, and Jordan Nelson with securities fraud for misappropriating investor funds. The funds were intended for the development and construction of new event centers.
According to a complaint filed in federal district court in Utah, Ashby, Beynon, and Nelson allegedly sold investors interests in for-profit event centers through entities they controlled. These centers were purportedly being developed by Noah Corporation, an entity controlled by Bowser.
The complaint alleges that from approximately January 2017 to February 2019, Bowser diverted investor funds earmarked for specific properties. Instead of using the money for construction, the funds were allegedly used for Noah Corporation's and Bowser's operational expenses and to pay prior investors.
Furthermore, the SEC alleges that Ashby, Beynon, and Nelson failed to escrow investor funds. Instead, they disbursed the funds to an entity controlled by Bowser without having controls in place to ensure disbursements were for legitimate expenses.
The defendants consented to judgments without admitting or denying the allegations. The judgments include injunctions against violating the charged provisions and various financial penalties.
William Bowser was ordered to pay disgorgement of $47,796 with $6,402 in prejudgment interest and a $192,768 penalty. Christopher Ashby was ordered to pay disgorgement of $551,161 with $43,994 in prejudgment interest and a $96,384 penalty. Scott Beynon was ordered to pay disgorgement of $585,426 with $46,729 in prejudgment interest and a $96,384 penalty. Jordan Nelson was ordered to pay disgorgement of $281,273 with $22,451 in prejudgment interest and a $96,384 penalty.
The SEC investigation was conducted by Cheryl Mori and supervised by Daniel Wadley and Amy Oliver of the Salt Lake Regional Office. Casey Fronk is leading the litigation.
