In December of 2017 the SEC charged the Woodbridge Group of Companies with being a $1.2 billion ponzi scheme. Woodbridge’s scheme targeted unsuspecting main street investors, especially elder investors.
This post serves to update Woodbridge investors on the current status of lawsuits against the individuals who perpetrated the scheme. If you have any questions that aren’t answered here, please feel free to contact our firm.
WATCH: Attorney Jeffrey Sonn Discusses the Woodbridge Ponzi Scheme on NBC6 in Miami
Lawsuits Against Individuals Involved with Woodbridge
Lynette Robbins
SEC vs. Lynette M. Robbins and Knowles Systems, Inc.
Click here to read the full text of the SEC plaintiff complaint.
The defendant in this case, Lynette M. Robbins (through Defendant, Knowles Systems, Inc.) is alleged to have served as an unregistered broker on behalf of Woodbridge Group of Companies and its affiliates.
Robbins is alleged to have utilized several marketing techniques, including hiring “media influencers” who advertised the Woodbridge securities to the general public via radio, television and internet-based programs, routinely touting Woodbridge’s securities as “safe and secure.”
Unbeknownst to the Robbins’ customers, many of whom had invested their retirement savings in response to her marketing techniques, Woodbridge was allegedly 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.
The SEC further alleges that, at all relevant times, Robbins held no securities licenses, were not registered with the Commission, and were not associated with registered broker-dealers, nor did they qualify for an exemption. Robbins was thus not permitted to sell securities.
SEC vs. Kornfeld, Costa, Klager, Et al.
Click here to read the full text of the SEC plaintiff complaint.
Ferne and Barry Kornfeld Woodbridge
The SEC alleges that from at least April 2013 through December 2017, the Defendants (Barry M. Kornfeld, Ferne Kornfeld, Andrew G. Costa, and Albert D. Klager) served as unregistered brokers on behalf of Woodbridge Group of Companies and its affiliates, raising almost $100 million from the offer and sale of unregistered securities to over 1,100 retail investors located throughout the United States.
The Defendants, all based in Florida, collectively earned more than $5.8 million in transaction-based sales commissions.
Albert D. Klager
Unbeknownst to the Defendants’ customers, many of whom had invested their retirement savings in response to the Defendants’ marketing techniques, Woodbridge was allegedly 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.
Andy Costa
The SEC further alleges that, at all relevant times, the Defendants held no securities licenses, were not registered with the Commission, and were not associated with registered broker-dealers, nor did they qualify for an exemption.
The Defendants were thus not permitted to sell securities. In addition, Defendant Barry M. Kornfeld was subject to a Commission order barring him from associating with a broker.
