INVESTOR ALERT: SEC CHARGES OPERATORS OF $1.2 BILLION PONZI SCHEME TARGETING MAIN STREET INVESTORS

Woodbridge Mortgage Investment Fund Allegedly Used Unlicensed Individuals to Sell Unregistered Securities in a Ponzi Scheme

The Furgison Law Group plaintiffs' securities lawyers are investigating Woodbridge Mortgage Investment Fund’s alleged use of unlicensed individuals to sell unregistered securities in California and across the country.

Investors who believe they may have lost money in activity related to Woodbridge Mortgage Investment Fund’s alleged implementations of unlicensed individuals selling unregistered securities should contact Jon Furgison or one of our Securities Analysts with any useful information or for a free, no obligation case evaluation.

Woodbridge Mortgage Investment Fund, of Sherman Oaks, California, has fallen under regulatory actions following allegations that the firm purportedly used unlicensed individuals to sell unregistered securities, according to an SEC Action filed in the Southern District of Florida District Court currently under review by attorneys at the Furgison Law Group.

Woodbridge Mortgage Investment Fund came under SEC investigation on November 1, 2017, concerning Woodbridge Mortgage Investment Fund’s conduct while raising over one billion dollars from investors, and whether those offerings were completed using unregistered securities, according to the SEC Action.

In addition to the filings in Florida, a separate action has purportedly been filed by the Colorado Commissioner of Securities that alleges that Woodbridge Mortgage sold securities in violation of Colorado law, according to reports from the Colorado Commissioner of Securities. Various other states are also investigating similar claims.

The Commissioner further alleges that Woodbridge purportedly raised nearly $60 million from Colorado investors, and that the company implemented unlicensed sales representatives to make sales of unregistered securities via misrepresentations and omissions of material facts.

What is more, the reports from Colorado allegedly named three individuals, James Campbell, Timothy McGuire and Ronald Caskey, who were affiliated with Woodbridge Mortgage Investment Fund and whom were not licensed to make sales of securities, according to a Complaint from the Colorado Commissioner of Securities.

Woodbridge also allegedly made sales though material misrepresentations and omissions of fact, such as a lack of registration of the offering, the qualifications of the managers of the funds, the solvency of the company, the risks of the offering, and prior regulatory actions against Woodbridge in Arizona, Texas and Massachusetts, the Complaint also notes.

Ronald Caskey, one of the unlicensed salesman, is known for hosting the Ron Caskey Show in Colorado and Illinois, and, in addition with James Campbell and Timothy McGuire, are being investigated for sales of Woodbridge Mortgage Investment Fund One, Two, Three, and Three A, the Complaint reports.

Woodbridge is not, and does not appear to ever have been, a registered brokerage firm or investment advisory company.  It similarly appears that none of the securities issued by Woodbridge were registered with any state securities regulators or the SEC.  Despite this lack of registration, it has sold securities across the country, both directly and through a number of third party sales intermediaries.  Public filings show that William Holliday, registered with the advisory firm AIO Financial, LLC sold these securities to his clients and clients of his firm.  Frank Capuano, a former registered representative of Royal Alliance Associates, Inc. sold more than $1 million in investments in Woodbridge products to his clients.  His securities licenses were ultimately suspended by FINRA for his involvement.  Similarly, Elizabeth Haskell, working under Iron Will Advisory Group, sold these securities in Pennsylvania.

Woodbridge also allegedly issued promissory notes to support the offerings which would make them securities under state and federal law, the Complaint notes. One should note, however, that complaints filed by the Regulators are not final, and until the allegations have been proven in a court of law, no negative inferences should be drawn.

Woodbridge Allegedly Raised over $1 Billion from Several Thousand Investors Nationwide through Various Investment Offerings via Various Forms and Structures Woodbridge has raised more than $1 billion from several thousand investors nationwide through multiple investment offerings using various forms and structures, according to the aforementioned Court Reports.

For example, regarding the Woodbridge Mortgage Investment Fund III, LLC, Woodbridge allegedly made a filing with the Commission on September 18, 2015, a Form D stating that it had raised $36,330,251 from a potential offering of $50,000,000, the Reports note.

The Court Reports further allege that a network of both internal and external nationwide sales agents allegedly market different investments and these sales agents are allegedly paid various levels of commissions for their work, the Reports state.

What is more, the Woodbridge Funds are commercial lenders that make hard-money loans secured by commercial property and the Woodbridge Funds raise money from investors to help fund the hard cash loans, according to a Massachusetts enforcement action.

The Woodbridge Funds allegedly pool money from various investors for each hard-money loan, and the Woodbridge Funds’ promissory notes effectively guarantee the underlying hard-money loans, and the Woodbridge Funds’ advertising materials state that the Woodbridge Funds are obligated to make payments to FPCM investors even if the hard-money borrower defaults, the Reports state.

Securities Lawyers Investigating

The Furgison Law Group securities lawyers represent investors who lose money as a result of investment related fraud or misconduct and are currently investigating Woodbridge Mortgage Investment Fund's alleged use of unlicensed individuals. We take most cases of this type on a contingency fee basis, which means you only pay our fees if we recover money for you.

Can I recover my investment losses?

If you lost money from your investment in any of the Woodbridge investment products, please contact us immediately. Our investment fraud lawyers have recovered millions of dollars from the largest banks, insurance companies and brokerage firms in the world on behalf of investment fraud victims. You may have certain legal rights that require your immediate attention. Time is of the essence in these claims. The sooner you act, the greater your chances of recovering your investment losses. Don't wait. Contact us TODAY for a FREE Consultation and case evaluation. We will tell you if you have a viable claim worth pursuing.