If you’ve invested your money or a client’s money in promissory notes sponsored by Woodbridge Wealth, you should hire an attorney – pronto. Whether you are a financial advisor or an unregistered individual, such as an insurance agent, it’s time to “lawyer up” and protect yourself, especially from your own broker dealer. Here’s why:
Woodbridge Wealth, a division of Woodbridge Group of Companies, LLC, is currently under federal investigation by the Securities and Exchange Commission regarding potential fraudulent operations. The agency is investigating whether Woodbridge and others have violated or are violating the antifraud, broker-dealer, and securities registration provisions of the federal securities laws. Specifically, the Commission is looking into the offer and sale of unregistered securities, the sale of securities by unregistered brokers, and the commission of fraud in connection with the offer, purchase, and sale of securities.
The SEC sent subpoenas to a group of 235 limited liability corporations it believes are owned and/or controlled by Woodbridge’s president, Robert Shapiro, leading its investigative team to find that there are numerous LLC’s interwoven into the structure of products Woodbridge offers for investment.
An example of specific products under scrutiny include:
- WMF Management
- Woodbridge Group of Companies
- Woodbridge Mortgage Investment Fund 1
- Woodbridge Mortgage Investment Fund 2
- Woodbridge Mortgage Investment Fund 3
- Woodbridge Mortgage Investment Fund PA
- Woodbridge Wealth
Do any of these products sound familiar to you?
According to FINRA suitability rules, a financial advisor has a duty to conduct sufficient due diligence on any investment he or she recommends to an investor – including private placements under Regulation D. A misrepresentation concerning the nature and characteristics of an investment or an unsuitable recommendation (based on the investor’s investment objectives and risk profile) may entitle that investor to rescission and other damages, which could give rise to a claim against a stockbroker or financial advisor.