Key facts
- Phoenix American Hospitality LLC and its CEO W.L. "Perch" Nelson settled an SEC suit.
- The suit alleged misrepresentation of hotel investment funds.
- The scheme raised $86 million from over 2,000 investors.
- Phoenix American Hospitality LLC will pay a $591,000 penalty.
- W.L. "Perch" Nelson will pay a $118,000 penalty.
- Nelson faces a five-year ban from officer or director roles.
Phoenix American Hospitality LLC and its CEO, W.L. "Perch" Nelson, have reached a settlement with the Securities and Exchange Commission (SEC) over allegations of an investment scheme. The SEC's suit claimed that the hospitality firm and its CEO misrepresented hotel investment funds, leading to the raising of $86 million from over 2,000 investors. The settlement includes a penalty of $591,000 for Phoenix American Hospitality LLC. Additionally, W.L. "Perch" Nelson will pay a penalty of $118,000. Nelson also faces a five-year prohibition from serving in officer or director positions within any public company. The case centered on the alleged misrepresentation of the investment funds used for hotel projects.