SEC regulations are intended to provide investors with a framework of full disclosure of risks and anti-fraud provisions. That said, there are still investment schemes that are not following the protective measures as set out by the SEC.
For this reason, it is important to carefully consider what company you will be investing with and verify the reputation of that company before moving forward with signing the contracts. From time to time there are companies that the SEC scrutinizes to ensure that they are in fact complying with its regulations regarding the trading of securities.
Woodbridge Wealth is currently one of those companies in which the SEC is investigating.
Woodbridge Wealth’s Role in the Industry
Woodbridge Wealth is an investment firm that has its roots in Sherman Oaks, California but has expanded nationwide. The firm is suspected to be affiliated with at least 235 different limited liability companies that are engaging in the buying and selling of securities through trades related to second market annuities and mortgages while promising strong investment returns to investors.
What has come into question recently is the nature of how these securities are being traded and whether the investors are being adequately informed about the risks of their prospective investments and what their investment capital is being invested in.
Allegations of this sort are regularly investigated by the SEC with entities in question, which is precisely why the SEC launched an investigation about Woodbridge Wealth recently.
The SEC’s Investigation Into Woodbridge Wealth
In November 2016, the SEC began to investigate Woodbridge Wealth and its affiliates over allegations of non-disclosure to investors and improper sales of unregistered securities. Throughout the investigation, Woodbridge Wealth has not fully complied with the SEC, so much so, that they had to request subpoenas recently due to the firm’s lack of compliance with their request for documentation.
While some communications have been disclosed, there are many more that are still required by the SEC to conduct a thorough investigation. In addition, the CEO, Robert Shapiro exercised his Fifth Amendment rights in court, which further adds to the suspicion surrounding the nature of the transactions endorsed by Woodbridge Wealth and its affiliates.
When Is It Necessary to Hire a Hire a Lawyer?
It is important to hire an attorney once the investment firm that you have invested with is the target of an investigation by the SEC. The sooner that you act, the better off you may be.
Silver Law Group has a very highly-regarded reputation among clients and colleagues nationwide for being experienced in the field of investment and securities fraud. The best way to see what options you have with your particular circumstances is to arrange for a consultation call with our attorneys in order to see how our firm can potentially assist you with your goals.