SEC Charges Pastor With Defrauding Retirees
Michigan pastor Larry Holley, his company Treasure Enterprise LLC, and associate Patricia Enright Gray defrauded over 80 investors—primarily church members, retirees, and laid-off auto workers—of $6.7 million by falsely claiming funds would be invested in a profitable real estate business using faith-based deception, with no IRAs established and $1.9 million in unpaid returns, leading to SEC charges, an asset freeze, and calls for disgorgement and injunctions.
The SEC charged Larry Holley, Treasure Enterprise LLC, and Patricia Enright Gray with defrauding more than 80 investors of approximately $6.7 million by falsely promising high returns from a non-existent profitable real estate business. Holley and Gray exploited religious trust through faith-based rhetoric, claiming investments would be rolled into tax-advantaged IRAs—none of which were ever created—and targeted vulnerable groups including laid-off auto workers and retirees. The SEC alleges no meaningful real estate activity occurred, leaving $1.9 million in unpaid obligations, and that the defendants were unregistered to sell securities, prompting a court-ordered asset freeze, receiver appointment, and demands for disgorgement, penalties, and permanent injunctions under Sections 5(a), 5(c), 17(a), 10(b), 20(a), and Rule 10b-5.
The SEC charged Michigan pastor Larry Holley, his company Treasure Enterprise LLC, and business associate Patricia Enright Gray with orchestrating a $6.7 million fraud targeting church members, retirees, and recently laid-off auto workers who were misled into believing their money would be invested in a profitable real estate business. Holley used faith-based manipulation, invoking scripture and prayer during 'Blessed Life Conferences,' telling congregants he was more trustworthy than bankers and calling them 'millionaires in the making,' while Gray specifically targeted those with severance packages via religious radio ads. Investors were falsely assured their funds would be rolled into tax-advantaged IRAs, but no IRAs were ever established, and Treasure Enterprise lacked sufficient real estate revenue to sustain operations or pay returns. Approximately $1.9 million in past-due payments are owed to investors, and neither Holley, Gray, nor Treasure Enterprise were registered to sell securities, violating federal securities laws. The SEC obtained a temporary restraining order freezing their assets, appointing a receiver, and imposing emergency relief in U.S. District Court for the Eastern District of Michigan. The agency seeks disgorgement of ill-gotten gains with interest, civil penalties, and permanent injunctions for violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Sections 10(b), 20(a) and Rule 10b-5 of the Securities Exchange Act of 1934. The investigation, led by SEC attorneys in Chicago, remains ongoing, with officials urging investors to verify credentials via investor.gov.
Exhibits & Attached Documents (1)
Extracted insights
- $6.70M $6.7 million $1M–$10M
- $1.90M $1.9 million $1M–$10M
- person david glockner
- person jonathan s. polish
- person larry holley
- company larry holley, patricia enright gray, treasure enterprise llc
- person patricia enright gray
- agency sec case
- agency sec's chicago regional office
- agency Securities and Exchange Commission
- person steven l. klawans
- company treasure enterprise llc
- court u.s. district court for the eastern district of michigan
- SEC announced fraud charges against Larry Holley
- SEC obtained emergency asset freeze against Larry Holley, Patricia Enright Gray, Treasure Enterprise LLC
- Larry Holley is pastor of Abundant Life Ministries in Flint, Michigan
- Larry Holley allegedly raised $6.7 million from more than 80 investors
- Treasure Enterprise LLC owes investors $1.9 million in past due payments
- Patricia Enright Gray advertised on religious radio station based in Flint
- Patricia Enright Gray allegedly promised to roll over investors' retirement funds into IRAs
- SEC alleges violations of Sections 5(a), 5(c), 17(a) of Securities Act of 1933 and Sections 10(b), 20(a) of Securities Exchange Act of 1934
- SEC obtained temporary restraining order in U.S. District Court for the Eastern District of Michigan
- David Glockner is Director of SEC's Chicago Regional Office
- Ana P. Doncic, Delia L. Helpingstine, Sruthi Koneru conducted SEC investigation in Chicago office
- Steven L. Klawans supervises SEC case
- Jonathan S. Polish leads litigation for SEC case
The Securities and Exchange Commission today announced fraud charges and an emergency asset freeze obtained against a Michigan-based pastor accused of exploiting church members, retirees, and laid-off auto workers who were misled to believe they were investing in a successful real estate business. The SEC alleges that Larry Holley, the pastor of Abundant Life Ministries in Flint, Mich., cloaked his solicitations in faith-based rhetoric, replete with references to scripture and biblical figures. Holley allegedly told prospective investors that as a person who “prayed for your children,” he was more trustworthy than a “banker” with their money. According to the SEC’s complaint, Holley held financial presentations masked as “Blessed Life Conferences” at churches nationwide during which he asked congregants to fill out cards detailing their financial holdings, and he promised to pray over the cards and invited attendees to have one-on-one consultations with his team. He allegedly called his investors “millionaires in the making.” According to the SEC’s complaint, which also charges Holley’s company Treasure Enterprise LLC and his business associate Patricia Enright Gray, approximately $6.7 million was raised from more than 80 investors who were guaranteed high returns and told they were investing in a profitable real estate company with hundreds of residential and commercial properties. According to the complaint, Gray advertised on a religious radio station based in Flint and singled out recently laid-off auto workers with severance packages to consult her for a “financial increase.” Gray allegedly promised to roll over investors’ retirement funds into tax-advantaged Individual Retirement Accounts (IRA) and invest them in Treasure Enterprise. The SEC alleges that no investor funds were deposited into IRAs, and Treasure Enterprise struggled to generate enough revenue from its real estate investments to support the business and make payments owed to investors. Treasure Enterprise owes investors an estimated $1.9 million in past due payments, according to the SEC’s complaint. “As alleged in our complaint, Holley and Gray targeted the retirement savings of churchgoers, building a bond of trust purportedly based on faith but actually based on false promises,” said David Glockner, Director of the SEC’s Chicago Regional Office. According to the SEC’s complaint, Holley, Gray, and Treasure Enterprise were not registered to sell investments. The SEC encourages investors to check the background of anyone offering to sell them investments by doing a quick search on the SEC’s investor.gov website. The SEC has obtained a temporary restraining order in U.S. District Court for the Eastern District of Michigan that freezes the assets of Holley, Gray, and Treasure Enterprise. The court’s order also appoints a receiver and imposes other emergency relief. The SEC’s complaint alleges violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5. The complaint seeks disgorgement of ill-gotten gains plus interest, penalties, and permanent injunctions. The SEC’s investigation, which is continuing, is being conducted by Ana P. Doncic, Delia L. Helpingstine, and Sruthi Koneru of the Chicago office. The case is being supervised by Steven L. Klawans, and the litigation is being led by Jonathan S. Polish.
The Securities and Exchange Commission today announced fraud charges and an emergency asset freeze obtained against a Michigan-based pastor accused of exploiting church members, retirees, and laid-off auto workers who were misled to believe they were investing in a successful real estate business. The SEC alleges that Larry Holley, the pastor of Abundant Life Ministries in Flint, Mich., cloaked his solicitations in faith-based rhetoric, replete with references to scripture and biblical figures. Holley allegedly told prospective investors that as a person who “prayed for your children,” he was more trustworthy than a “banker” with their money. According to the SEC’s complaint, Holley held financial presentations masked as “Blessed Life Conferences” at churches nationwide during which he asked congregants to fill out cards detailing their financial holdings, and he promised to pray over the cards and invited attendees to have one-on-one consultations with his team. He allegedly called his investors “millionaires in the making.” According to the SEC’s complaint, which also charges Holley’s company Treasure Enterprise LLC and his business associate Patricia Enright Gray, approximately $6.7 million was raised from more than 80 investors who were guaranteed high returns and told they were investing in a profitable real estate company with hundreds of residential and commercial properties. According to the complaint, Gray advertised on a religious radio station based in Flint and singled out recently laid-off auto workers with severance packages to consult her for a “financial increase.” Gray allegedly promised to roll over investors’ retirement funds into tax-advantaged Individual Retirement Accounts (IRA) and invest them in Treasure Enterprise. The SEC alleges that no investor funds were deposited into IRAs, and Treasure Enterprise struggled to generate enough revenue from its real estate investments to support the business and make payments owed to investors. Treasure Enterprise owes investors an estimated $1.9 million in past due payments, according to the SEC’s complaint. “As alleged in our complaint, Holley and Gray targeted the retirement savings of churchgoers, building a bond of trust purportedly based on faith but actually based on false promises,” said David Glockner, Director of the SEC’s Chicago Regional Office. According to the SEC’s complaint, Holley, Gray, and Treasure Enterprise were not registered to sell investments. The SEC encourages investors to check the background of anyone offering to sell them investments by doing a quick search on the SEC’s investor.gov website. The SEC has obtained a temporary restraining order in U.S. District Court for the Eastern District of Michigan that freezes the assets of Holley, Gray, and Treasure Enterprise. The court’s order also appoints a receiver and imposes other emergency relief. The SEC’s complaint alleges violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5. The complaint seeks disgorgement of ill-gotten gains plus interest, penalties, and permanent injunctions. The SEC’s investigation, which is continuing, is being conducted by Ana P. Doncic, Delia L. Helpingstine, and Sruthi Koneru of the Chicago office. The case is being supervised by Steven L. Klawans, and the litigation is being led by Jonathan S. Polish.