SEC v. Phoenix American Hospitality, LLC and William Lee Nelson

Phoenix American Hospitality, LLC and William Lee “Perch” Nelson allegedly made untrue statements to retail investors about the assets held by, and profitability of, two hotel-focused investment funds. According to the complaint, PAH, through Nelson, claimed that one fund owned as many as 11 hotels, while, in reality, the fund owned only a preferred equity interest in a single hotel until January 2024, when it acquired interests in other hotels. As further alleged, PAH, through Nelson, made untrue statements that both funds made regular profit distributions of up to 12% per year to investors, when, in reality, neither of the funds was profitable and distributions were primarily funded by returns of investor capital.

Summary generated from official Securities and Exchange Commission press release