Securities Arbitration Lawyers BlogWoodbridge Wealth is Not Registered with the SEC or FINRA
Woodbridge Wealth promotes itself as a division of Woodbridge Group of Companies and advertises as a company with a focus on “wealth creation” claiming “Woodbridge Wealth is among the most innovative financial companies in the U.S. From its base in Sherman Oaks, California, it helps countless clients realize strong returns with lower-risk products without the burden of long-term commitments.”
The promise of lower-risk investments with strong returns has helped Woodbridge Wealth and its related companies raise over $1 billion from investors nationwide. However, recent SEC filings and other state action have raised concerns that Woodbridge Wealth may have violated the federal securities laws by selling unregistered securities or violating the anti-fraud provisions of the federal securities laws.
SEC Filings Concerning Woodbridge Wealth
According to recent SEC filings, the SEC alleges that Woodbridge has failed to cooperate in the SEC’s investigation by refusing to turn over relevant evidence including e-mails and corporate records. Also, it has recently been revealed that Robert Shapiro, Woodbridge’s CEO and president, and others at the company have invoked their 5th Amendment right to not testify against themselves.
In addition to the SEC action, multiple state actions reveal that some financial advisors have been issued a cease and desist for selling various Woodbridge funds and other products without the proper registrations. In 2015, Massachusetts entered into a Consent Order with Woodbridge Mortgage Investment Funds (“Woodbridge Mortgage”) without admitting or denying the violations of law, Woodbridge Mortgage agreed to stop selling unregistered or non-exempt securities in Massachusetts.
Over the last twenty-four months, Arizona and Texas have entered into similar cease and desist orders with Woodbridge related entities. According to a recent news story, other states continue to investigate Woodbridge. Woodbridge is reportedly the owner of more than 120 properties in Aspen and Aspen Glen where Woodbridge President Robert Shapiro lives part time.
Woodbridge markets its investments through a referral program which allows financial advisors or others to earn a bonus or referral fee for sending clients to Woodbridge. However, according to FINRA suitability rules, a financial advisor has a duty to conduct adequate due diligence and to know if an investment meets an investor’s investment objectives and risk profile. A violation of the securities laws or regulations may entitle an investor to rescission or other damages.
Contact Our Securities Law Firm if You’ve Invested with Woodbridge Wealth
Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.