Securities Fraud Lawyer Blog
Woodbridge Mortgage Investment Fund of Sherman Oaks, California has been the subject of several regulatory actions concerning allegations that the firm used unlicensed individuals to sell unregistered securities.
On November 1, 2017 the SEC initiated a proceeding to obtain information from Woodbridge Mortgage Investment Fund of Sherman Oaks, California seeking to compel the firm to produce documents as part of an investigation into Woodbridge’s fund raising efforts
The SEC action concerns Woodbridge Mortgage Investment Fund’s conduct in raising over one billion dollars from investors, and whether the offerings were completed using unregistered securities. The SEC contends that Woodbridge has delayed responding to its prior requests for production of documents and information, necessitating the filing of the action in the Southern District of Florida District Court.
This action follows on the heels of a separate action filed by the Colorado Commissioner of Securities that alleged that Woodbridge Mortgage sold securities in violation of Colorado law. The Commissioner alleged that Woodbridge raised nearly $60 million from Colorado investors, and that the company used unlicensed sales representatives to sell unregistered securities via misrepresentations and omissions of material facts.
The Colorado filing identified three individuals affiliated with Woodbridge Mortgage Investment Fund who solicited investors; James Campbell, Timothy McGuire and Ronald Caskey. These individuals were not licensed to sell securities. The complaint also alleges that sales were made though material misrepresentations and omissions of fact, such as the 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.
One of the unlicensed salesmen in Colorado is Ronald Caskey who hosts the Ron Caskey Radio Show which airs in Colorado and Illinois. Caskey, along with James Campbell and Timothy McGuire are being investigated for sales of Woodbridge Mortgage Investment Fund One, Two, Three and Three A. Among the contentions are that Woodbridge issued promissory notes to back the offerings, making them securities under state and federal law.
The complaints filed by the Regulators are not final, and until the allegations have been proven in a court of law, no adverse inferences should be drawn.
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery. For the past 23 years, we have dedicated our law practice to assisting investors who have been victims of investment fraud via fraudulent and unsuitable investment transactions. During that time we have recovered money for over one thousand individuals, pension plans, trusts and companies. The recoveries we have obtained via judgments, awards and settlements on behalf of our clients exceed $40,000,000.
FINRA’s rules require that all investment recommendations made by licensed financial advisors be suitable in light of a customer’s needs, objectives and risk tolerance. In addition, all registered representatives are required to be properly supervised, with periodic inspections and reviews by qualified supervisors, whose job it is to vigorously investigate suspicions of wrongdoing (red flags).
If you suspect that you have been the victim of investment fraud, or had a financial advisor recommend unsuitable investments to you, call us today for a free, confidential consultation at (702) 380-3131.