On December 19, 2018, the SEC announced additional charges against an additional 13 individuals and 10 companies for unlawfully selling securities of Woodbridge Group of Companies LLC to retail investors.
Woodbridge collapsed into bankruptcy in December 2017. The SEC previously charged the owner, the company and others of operating a $1.2 billion Ponzi scheme. Top sales agents were also accused.
The supplemental defendants, all 13, of selling more than $350 million of unregistered securities to about 4,400 investors. The defendants told the purchasers that the Notes were “safe” Investments.
Millions were reaped in commissions.
It is unlawful to engage in a public sale of securities without the securities being registered under the Securities Exchange Act of 1934. In certain circumstances, an offering can be made without registration to “accredited investors” who are more sophisticated and can absorb potential loss. But state securities statutes also require that one either be registered as a broker -dealer or receive an “exemption” from registration as well. With Woodbridge, it seems that neither the Notes nor the salespersons were “registered” nor received any “exemption from registration.”http://www.BrokerFraud.Net
“The SEC has now charged 18 of Woodbridge’s highest-earning unregistered sales agents who sold more than $400 million of its securities to retail investors,” said Eric I. Bustillo, Director of the SEC’s Miami Regional Office. “Our continuing investigation of Woodbridge seeks to hold those who aided this massive fraud accountable and to return funds to harmed investors.”
Some defendants have already settled. The SEC is seeking court-ordered injunctions, return of allegedly ill-gotten gains with interest, and financial penalties against a variety of other defendants.
Anthony M. Abraham, Esq., PC, has represented many investors who have claimed against Bankrupt and other estates for return of assets taken through fraud. Anthony M. Abraham, Esq., PC is experienced in churning and unauthorized trading claims. If you were victimized in this Ponzi scheme and need help, please call us Toll Free at 1-877-430-4877 for a Free Consultation or email us at Anthony@Abrahamattorneys.com.http://www.BroekrFraud.Net