Unregistered Brokers Generated Millions by Unlawfully Selling Woodbridge
On August 20, 2018, the Securities and Exchange Commission (SEC) charged
5 people and 4 companies associated with the Woodbridge Group of Companies
LLC of selling unregistered securities. Investigation by the SEC reveals
that the company has been operating a widespread Ponzi scheme, and owners
have generated more than $1.2 billion by selling more than $240 million
in unregistered securities to over 1,600 retail investors.
Despite not being registered as brokers and lacking the necessary permissions
to conduct such transactions, these individuals personally gained millions
of dollars on commissions from selling unregistered Woodbridge securities
to senior adults, which they advertised as being “safe” investments.
The unregistered broker-dealers for Woodbridge allegedly engaged in aggressive
solicitation and marketing tactics. They are suspected of seeking out
investors at various seminars and a retirement planning class they instructed
at one university, to have published advertisements for Woodbridge securities
in newspapers, to have advertised on the radio, television and on the Internet.
After Woodbridge took a downward turn and declared bankruptcy in December
2017, investors’ monthly interest payments were halted, and many
of them have not received back the amount of their investment principal.
How to Make Sure a Broker-Dealer Is Appropriately Registered
In response to the findings in this case thus far, the SEC has issued an
Investor Alert in order to help senior adults and others avoid falling victim to the
manipulative tactics of unregistered brokers and securities dealers. (Woodbridge
and other companies like it are listed in this alert.) The Commission
also recommends that anyone seeking to invest use its
Investor.gov website as a resource and a way of verifying the legitimacy of certain
brokers and companies.
Business Lawyers Serving Ponzi Scheme Victims in Longmont
At Jorgensen, Brownell & Pepin, P.C., we are here to help. If you have
been deceived by an unregistered broker or lost money by buying into a
Ponzi scheme like Woodbridge. Our
Longmont business attorneys understand what the law requires and will help you determine the best
course of action when being solicited by an unregistered broker or dealing
with the consequences of financial fraud.
Call (720) 809-8310 today to speak to a member of our team and schedule