Alan Harold New, Formerly of NYLife Securities, Barred by FINRA Following Refusal to Provide Documents and Information

FINRA initiated an investigation into New’s participation in the sale of promissory notes.

Alan Harold New (CRD#: 2892508) was registered as a broker with NYLife Securities from 2004 until 2016. Previously, New was registered as a broker with Northwestern Mutual Investment Services from 1999 until 2004. 

New has 17 disclosures on his BrokerCheck report. 

April 2020 Regulatory Judgment

• Status: Final
• Initiated By: FINRA
• Allegations: Without admitting or denying the findings, New consented to the sanction and to the entry of findings that he failed to provide documents and information requested by FINRA during the course of an ongoing investigation of his participation in the sale of promissory notes.
• Resolution: Acceptance, Waiver & Consent (AWC)
• Sanctions: Bar
• Registration Capacities Affected: All Capacities
• Duration: Indefinite
• Start Date: 4/8/2020

December 2019 Customer Dispute

• Status: Settled
• Allegations: Claimant alleges that he was either intentionally misled about the risks of the portfolio consisting of Woodbridge Promissory Notes or the RR was inexcusably reckless in failing to understand those risks. Claimant has not alleged the time period in which the investment was purchased away from the Firm. Claimant alleges at least $110,000.00 in actual damages.
• Damage Amount Requested: $110,000.00
• Settlement Amount: $39,000.00

October 2019 Customer Dispute

• Status: Settled
• Allegations: Customer alleges that he was misled regarding an unregistered investment in Woodbridge Mortgage Investment Fund purchased away from the Firm, in or about October 2015, from which he lost $200,000.00. Customer is seeking to rescind his New York Life Variable Annuity without penalty.
• Damage Amount Requested: $200,000.00
• Settlement Amount: $6,851.81

February 2019 Customer Dispute

• Status: Settled
• Allegations: Plaintiff alleges that material facts and the risks associated with an unregistered investment in Woodbridge Mortgage Investment Fund purchased in April 2017 were not disclosed. Plaintiff is seeking the return of his investment ($65,000) less any income received, plus 8% interest, costs and attorney’s fees.
• Settlement Amount: $37,500.00

December 2018 Civil Judgment

• Status: Pending
• Allegations: The Securities and Exchange Commission (“Commission”) alleges that from at least September 2013 through August 2017, the Defendants in this action served as unregistered brokers on behalf of Woodbridge Group of Companies LLC and its affiliates (“Woodbridge”), raising approximately $15 million from the offer and sale of Woodbridge’s unregistered securities to at least 100 retail investors located in at least nine states. The Defendants, all based in Fort Wayne, Indiana, collectively earned more than $1.5 million in transaction-based sales commissions. The Defendants pitched investors, both pre-existing customers and newly found, via telephone, e-mail and at in-person meetings providing them Woodbridge’s sales materials touting Woodbridge’s securities as “safe and secure.” Unbeknownst to the Defendants’ customers, many of whom had invested their retirement savings in response to the Defendants’ sales pitches, Woodbridge was actually operating a massive Ponzi scheme, raising more than $1.2 billion before collapsing in December 2017 and filing for bankruptcy. Once Woodbridge filed for bankruptcy, investors stopped receiving their monthly interest payments, and have not received a return of their investment principal. At all relevant times, the Defendants sold Woodbridge’s securities without being registered with the Commission to do so, nor were they associated with a registered broker-dealer who was selling Woodbridge’s securities. Further, Woodbridge’s securities were not registered with the Commission nor did they qualify for an exemption from registration. Defendants were thus not permitted to sell Woodbridge’s securities. By engaging in this conduct the Defendants each violated Sections 5(a) and 5(c) of the Securities Act of 1933 (“Securities Act”) and Section 15(a)(1) of the Securities Exchange Act of 1934.

December 2018 Customer Dispute

• Status: Settled
• Allegations: Claimants allege that in November 2014, January 2015, August 2016 , September 2015, December 2016 and March 2017 they were advised to purchase and subsequently roll over unregistered, nonexempt securities in the form of Woodbridge Promissory Notes. Claimants allege that the Promissory Notes along with an investment in 1 Global Capital LLC in September 2017 were misrepresented as safe and that their Woodbridge investments gave them ownership in certain parcels of property throughout the United States. Claimants seek judgment for all incidental losses, damages for breach of fiduciary duty, disgorgement of commissions, fees and other compensation, rescission of all existing investments and punitive damages.
• Settlement Amount: $100,000.00

October 2018 Customer Dispute

• Status: Settled
• Allegations: Claimants allege that in April 2015, February 2016 and September 2016 they were sold unregistered, nonexempt securities in the form of Woodbridge Promissory Notes. Claimants allege that the Promissory Notes along with an investment in FIP, LLC in February 2015 were unsuitable and inappropriate and that the risks were not disclosed. Claimants further allege that the products were sold away from the broker-dealer and seek $168,308.58 plus interest, cost and fees.
• Damage Amount Requested: $168,308.58
• Settlement Amount: $75,000.00

September 2018 Customer Dispute

• Status: Settled
• Allegations: Claimants allege that they were sold unregistered and fraudulent investments in Woodbridge Mortgage Investment Funds in January, March and July 2015.Claimants further allege that the investments were falsely represented as safe, secure and low risk and seek recovery of damages in the amount of $125,000 plus costs, interest, fees and punitive damages.
• Damage Amount Requested: $260,000.00
• Settlement Amount: $92,937.38

August 2018 Customer Dispute

• Status: Settled
• Allegations: Claimants, who are not customers of the Firm, allege that the were sold unregistered and fraudulent investments in Woodbridge Mortgage Investment Funds in February and October 2015 and February 2016. Claimants further allege that the investments were falsely represented as safe, secure and low risk and seek recovery of damages in the amount of $325,000 plus costs, interest, fees and punitive damages.
• Damage Amount Requested: $325,000.00
• Settlement Amount: $115,740.68

July 2018 Customer Dispute

• Status: Settled
• Allegations: Claimant alleges that material facts and the risks associated with an unregistered investment in Woodbridge Mortgage Investment Fund purchased in April 2014 and October 2015 were not disclosed. Claimant is seeking recovery of damages in the amount of $350,000 as well as costs, interest and attorney’s fees.
• Damage Amount Requested: $350,000.00
• Settlement Amount: $123,935.92

July 2018 Customer Dispute

• Status: Settled
• Allegations: Claimants allege that material facts and the risks associated with an unregistered investment in Woodbridge Mortgage Investment Fund purchased in September 2013, January 2014 and July 2016 were not disclosed. Claimants also allege that material facts involving Future Income Payments, LLC, another unregistered investment, purchased in October 2014 were also not disclosed. Plaintiff is seeking recovery of damages in the amount of $900,000 as well as costs, interest and attorney’s fees.
• Damage Amount Requested: $900,000.00
• Settlement Amount: $405,247.75

June 2018 Customer Dispute

• Status: Settled
• Allegations: Customer alleges that he was misled regarding an unregistered investment in Woodbridge Mortgage Investment Fund purchased in August 2014. Customer is seeking the return of his investment ($65,000)
• Damage Amount Requested: $65,000.00
• Settlement Amount: $20,000.00

June 2018 Customer Dispute

• Status: Settled
• Allegations: Claimant alleges that in February 2015 and November 2015 she was sold unregistered and misrepresented investments. Claimant further alleges that in September and December 2016, she was advised to roll over the investments and that they are now worthless. Claimant seeks to recover damages of at least $170,000 in lost principal as well as lost interest, reasonable costs and attorneys’ fees.
• Damage Amount Requested: $170,000.00
• Settlement Amount: $45,000.00

April 2018 Customer Dispute

• Status: Settled
• Allegations: Plaintiff alleges that material facts and the risks associated with an unregistered investment purchased in Woodbridge Mortgage Investment Fund in December 2013 were not disclosed. Claimant seeks recovery of damages in the amount of at least $400,000.00
• Damage Amount Requested: $400,000.00
• Settlement Amount: $155,958.52

April 2018 Customer Dispute

• Status: Settled
• Allegations: Claimants allege that in April 2014, June 2015 and February 2016 they were sold unregistered and fraudulent investments in Woodbridge Mortgage Investment Fund. Claimants seek to recover damages of at least $319,000 and lost opportunity costs, punitive damages, costs and interest.
• Damage Amount Requested: $319,000.00
• Settlement Amount: $125,544.66

March 2018 Customer Dispute

• Status: Settled
• Allegations: Claimant alleges that in July 2015, April 2016 and December 2016 he was sold unregistered and fraudulent investments in Woodbridge Mortgage Investment Fund . Claimant seeks to recover damages of at least $550,500 and lost opportunity costs, punitive damages, costs and interest.
• Damage Amount Requested: $550,500.00
• Settlement Amount: $241,275.15

January 2018 Customer Dispute

• Status: Settled
• Allegations: Claimants allege that in November 2013 and July 2014 they were sold unregistered and fraudulent investments in Woodbridge Mortgage Investment Fund. Claimants seek to recover damages of at least $100,001 and lost opportunity costs, punitive damages, costs and interest.
• Damage Amount Requested: $100,001.00
• Settlement Amount: $39,359.94

Contact Us Today

The Sonn Law Group is currently investigating allegations surrounding Alan Harold New. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.