Regulators Investigating Brokers/Advisors who Pushed the Woodbridge Wealth Ponzi Scheme on Investors

On June 6th, 2018, InvestmentNews.com reported that state securities industry regulators and the Financial Industry Regulatory Authority (FINRA) are ramping up enforcement action against registered brokers and registered investment advisors who sold Woodbridge Wealth promissory notes to their clients.

In December of 2017, Woodbridge Wealth was finally exposed as a $1.2 billion Ponzi scheme. Unfortunately, many investors have sustained serious losses as a result of the Woodbridge Wealth fraud. Altogether, investigators believe that at least 8,400 investors have lost money in Woodbridge Wealth financial products.

In far too many cases, investors put their money into Woodbridge Wealth after receiving poor advice from negligent brokers and negligent financial advisors. At Sonn Law Group, our legal team has been carefully investigating the Woodbridge fraud. More than a month before the SEC brought civil charges, our lead attorney Jeffrey Sonn predicted that Woodbridge Wealth was a Ponzi scheme.

Brokers and Financial Advisors May Be Liable for Woodbridge Wealth Losses

In some cases, Woodbridge Wealth used a network of underground, unlicensed brokers to push its fraudulent financial products on investors. Many of these brokers had been previously barred or sanctioned by FINRA. At the same time, there are also many cases in which actively registered FINRA brokers sold Woodbridge Wealth promissory notes to investors.

InvestmentNews.com cites two examples of registered brokers who have recently faced sanctions from FINRA for improperly selling Woodbridge products to investors: Christopher Wendel and Peter D. Holler. Mr. Wendel has been permanently barred from the securities industry, while Mr. Holler is facing a two-year suspension from the industry. FINRA reports that both brokers made substantial commissions by selling the fraudulent Woodbridge financial products to their customers.

If you are an investor who has sustained major losses because you purchased a Woodbridge Wealth promissory note from a registered broker or registered financial advisor, you may be entitled to financial compensation. Brokers and brokerage firms have a duty to perform basic due diligence of the financial products they are offering. Your broker or their member firm may be legally liable for your investment losses.

Get Help From a Ponzi Scheme Lawyer Today

At Sonn Law Group, our investment fraud team has deep experience handling Ponzi scheme claims. If you or a loved one sustained serious losses in the Woodbridge Wealth Ponzi scheme, please do not hesitate to contact us today for a free, fully private consultation. We represent investors nationwide.

Disclaimer: This article contains opinions and NOT statements of fact in any way whatsoever. The information here is general information that should not be taken as legal advice. NO attorney-client relationship is established between you and our attorneys by reading this article. This article is attorney advertising and should not be used as a substitute for legal advice from a qualified securities lawyer.