The Falls Event Center and CEO Steven Down Raised Money from Investors Through Fraudulent Representations and Omissions, Regulators Allege
The Falls Event Center and Steven Down, its CEO, allegedly raised approximately $120 million from more than 300 investors through material misrepresentations and omissions, according to an SEC Complaint under review by attorney Alan Rosca.
Investor rights attorney Alan Rosca is investigating allegations of investment fraud surrounding The Falls Event Center and Steven Down’s sales of promissory notes to investors. Investors who believe they may have lost money as a result of being fraudulently induced to invest in The Falls Event Center are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.
The Falls Event Center, a Utah limited liability company, and its CEO Steven Down of West Jordan, Utah, allegedly made material misrepresentations and omissions to investors concerning the profitability of certain of The Falls Event centers, the Securities and Exchange Commission’s Complaint notes.
Down Allegedly Solicited Investments in The Falls Event Centers Through Presentations to Professional Groups – Including Dentists – During Continuing Education Seminars
Down allegedly solicited investments in The Falls Event Centers by making presentations to groups of professionals – including dentists – at conferences and professional meetings. Down and The Falls stand accused of falsely assuring prospective investors that some or all of the event centers were and continued to be profitable, according to the aforementioned Complaint under review by attorney Alan Rosca.
Down allegedly sponsored said seminars and professional meetings, but certain of the aforementioned representations made by him to prospective investors who attended the seminars and meetings were untrue, the Complaint alleges.
Some of the members of The Falls’ executive team, from the first half of 2016 forward, allegedly informed Down that the event centers were not profitable, and also allegedly informed him that his event center model was unsustainable because of the millions of dollars owed to investors and to the event center mortgage holders, the Complaint notes.
Furthermore, Down reportedly received he Falls’ own accounting records regularly which allegedly showed that from the beginning of the project through September 2017, the event centers were never profitable, the Complaint states.
Without admitting or denying the SEC’s allegations, The Falls and Down have consented to the entry of a final judgment permanently enjoining them from future violations of Sections of the Securities Act, and Down has also agreed to pay a civil penalty of $150,000. More recently, Down has reportedly rescinded his consent to the entry of judgment and has denied he engaged in fraud.
Securities Lawyer Investigating on Behalf of The Falls Event Center Investors
The RoscaLaw firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating The Falls Event Center, LLC & Steven L. Down’s alleged investment fraud scheme. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions, and has helped recover tens of millions of dollars on behalf of investors.
Investors who believe they lost money as a result of The Falls Event Center, LLC & Steven L. Down’s alleged investment fraud scheme may contact attorney Alan Rosca for a free, no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
