Three investors, including two of Farish's fellow pilots, invested more than $1 million in the project, but the lot that was bought by New Summit for the project still remains empty and undeveloped, the SEC said.
The investments, meanwhile, were comingled with company money in New Summit's bank account and used to pay for Farish's personal monthly mortgage and rent payments; retail, restaurant and entertainment expenses, including iTunes purchases; "lavish" family vacations that included a Disney cruise; home remodeling; and a "retainer for a criminal defense lawyer for one of Farish’s sons arising from an incident in Waco, Texas, involving two rival motorcycle gangs," the complaint said.
The SEC complaint seeks permanent injunctions, disgorgement plus prejudgment interest and civil penalties.