Fraudulent Offering Tied to Austin Downtown Venue Bull & Bowl
Texas State Securities Board
AUSTIN (News Release) - Securities Commissioner Travis J. Iles entered an Emergency Cease and Desist Order to stop a fraudulent securities offering tied to Bull & Bowl, a nightclub located in downtown Austin, Texas.
The action names Austin resident David Wesley Goodnight and his businesses, Valiant Holdings, LLC, and Goodnight Group. It alleges the parties have been illegally soliciting investments issued by Valiant Holdings – even though Valiant Holdings is no longer in existence because the Texas Secretary of State forfeited the company after it failed to pay taxes.
Nevertheless, the investments purportedly issued by Valiant Holdings allegedly consist of indirect interests in Goodnight-Sixth, LLC, a company operating the Bull & Bowl. Goodnight is allegedly telling investors this type of investment – indirect interests instead of direct interests in the business – permits owners to avoid background checks, interviews and financial investigations required by the Texas Alcoholic Beverage Commission. He is also allegedly claiming the structure provides an added layer of security for investors, protecting them from potential litigation because their names will not appear on the liquor license.
According to the Secretary of State, Brandon John Cash is actually the Managing Member of the Bull and Bowl. Although Goodnight is holding himself out as a Director of Bull & Bowl, the order alleges Secretary of State records do not show any affiliation between Goodnight and Bull & Bowl.
Moreover, according to the order, Goodnight is concealing material information relating to his financial dealings. He allegedly failed to pay federal taxes and the Internal Revenue Service placed a lien on all of his property and all rights to his property. A former client also sued Goodnight, claiming Goodnight engaged in fraud and violated the Deceptive Trade Practices Act in connection with the sham sale of a military-style Humvee. In May 2021, the Court entered an order against Goodnight, holding him liable for damages, attorneys’ fees and pre-judgment interest.
Goodnight was also recently prosecuted for sexual assault, according to the order. The indictment was amended and he pleaded guilty to aggravated assault, a second degree felony. As part of the resolution of the case, Goodnight was required to complete sex offender treatment.
“You deserve to know who you’re dealing with,” said Joe Rotunda, Enforcement Director. “Texans work hard to provide for their families and save for retirement. They deserve full and fair disclosure of all material information before parting with their money.”
The order also alleges Goodnight and Goodnight Group are promoting an investment tied to United Fuel Solutions, a fuel additive company organized in Delaware and operating in India. According to Goodnight, investors may receive a five percent ownership interest in United Fuel Solutions and the company could easily become worth more than $500 million.
Goodnight, Goodnight Group and Valiant are not registered to sell securities in Texas. The investments named in the order are not registered or permitted for sale in Texas.