SEC Charges Unregistered Brokers Who Sold Woodbridge Group Products

Unregistered Brokers Generated Millions by Unlawfully Selling Woodbridge Securities

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) 491-3117 today to speak to a member of our team and schedule a consultation.