Woodbridge Wealth and Woodbridge Group of Companies SEC Investigation

Within the United States there has been a severe crack down on the trading of securities since the sub-prime mortgage crisis in 2008. The reason for this is that there was far too little regulation on how securities are traded and whether investors were receiving full disclosure on the nature and risks of what they were investing in.

In recent years, the Securities and Exchange Commission (SEC) has instituted reforms in cooperation with many government agencies with the objectives of making a unified and fair market within the United States that protects American consumers.

While this market has improved substantially since 2008, there are still instances where companies are investigated by the SEC in order to ascertain whether they are in fact complying with SEC regulations.

One such company that is undergoing an investigation by the SEC is Woodbridge Wealth.

Background on Woodbridge Wealth

Woodbridge Wealth is a company that is based in Sherman Oaks, California. They are thought to be related to at least 235 different LLC entities that offer various financial products to prospective investors and also hold the title to very high net worth real estate properties around the country. These entities collectively have raised more than $1 billion from investors.

The primary product offerings that Woodbridge Wealth offers are: Second Market Annuities (SMA), Commercial Bridge Loan Fund (CBLF), and First Position Commercial Mortgages (FPCM). These product offerings have come into question regarding the recent allegations of misrepresenting information about their financial products to investors and the selling of unregistered securities in a manner not permitted by the SEC.

The SEC’s Role in the Investigation

The SEC requested Woodbridge Wealth and its affiliate limited liability corporations to produce information specifically related to allegations concerning that employees from their group of limited liability corporations withheld material facts, potential profitability of investments, hidden sales fees, unexpected additional costs, safety of investments, and ultimately, how investments would be used from their investors.

Originally, the SEC began to investigate the group in November of 2016. Then, Woodbridge failed to comply with the request for documents, which has led to a recent court subpoena.

The SEC requested that all 235 limited liability corporations that may be involved produce additional documents; however, several parts of this request have yet to be fulfilled.

Due to the complexity of the case, it will take the SEC time to investigate how each LLC is related to Woodbridge Wealth and whether Woodbridge Wealth is in violation with financial regulations.

What Should You Do If You Have Invested with Woodbridge Wealth?

At this stage, if you have invested in Woodbridge Wealth or one of its suspected affiliates, it is highly recommended that you begin to speak to a lawyer regarding your potential risk and options for recovering your investment.

At Silver Law Group, we have a long-established reputation of excellence with regards to recovering investor losses through litigation and securities arbitration to clients nationwide. By reaching out to our office, our expert team of lawyers and accountants will be able to review the particulars of guide you through the legal options available to you in terms of potentially recovering your investment.