Securities Arbitration Lawyers Blog

What the CFTC Says About Binary Options

December 4, 2017 | Silver Law Group

Binary options are a trading mechanism that have taken many governmental agencies by surprise. The reason for this is that, in many cases, they appeared out of thin air. Due to the wide variety of financial transactions that are appearing on the Internet, it has become increasingly difficult in order to regulate how consumers can be protected. One of the pioneers of binary options protection to consumers has been the United States. The Securities and Exchange Commission (SEC) is the governmental agency that protects consumers from fraud circumstances of this nature. Due to the influx of fraud in the financial trading sector, the SEC has subsequently created the CFTC in order to handle regulation and recommendations with the objective of protecting Americans consumers that have fallen prey to many unfortunate investment schemes.

The CFTC’s Role

The Commodities Futures Trading Commission’s Office of Consumer Outreach (CFTC) issues warnings regarding fraudulent schemes that involve binary options and their various, yet diverse, trading platforms. Many of these schemes have historically refused to credit the consumer’s accounts, have withheld fund reimbursement, identity theft, and the tampering with software to generate more losing trades than winning ones. On a regular basis, the CFTC issues a report and warnings regarding the latest in fraud in the financial sector. Some of the most typical recommendations that are reported to the CFTC are mentioned below.

Binary Options Fraud Attorneys

December 4, 2017 | Silver Law Group

Binary Options Fraud Attorneys

The Internet has opened up consumers to a great deal of freedom in terms of what financial institutions and companies they are able to invest their capital with. With this diversification, there has also been a pool of risk that has opened up as well. These days, binary options are still an item in the financial investment sector that many consumers are not aware of if they have not studied the financial sector extensively. It is wise for those considering investing to work with an experienced broker that is licensed under U.S. regulatory bodies to help make sound investment decisions.

Background on Binary Options

Silver Law Group Investigates Barry Kornfeld and First Financial Tax Group for the Sale of Woodbridge Products to Retirees

December 4, 2017 | Silver Law Group

Silver Law Group is investigating claims related to Barry Kornfeld and First Financial Tax Group for the sale of investment products issued by the Woodbridge Group of Companies as safe alternatives for income seeking retirees.

Barry Kornfeld (“Kornfeld”) is the owner of First Financial Tax Group in Boca Raton, FL and teaches Baby Boomer Retirement Courses at Florida Atlantic University. Kornfeld is alleged to have sold short-term mortgage notes issued by the Woodbridge Group of Companies (“Woodbridge”) to retirees seeking safe, conservative, income alternatives. Barry Kornfeld was barred in July 2010 by both the U.S. Securities and Exchange Commission (“SEC”) and the Financial Industry Regulatory Authority (“FINRA”) from acting as a broker or investment adviser or otherwise associating with firms that sell securities or provide investment advice to the public.

Woodbridge is currently the subject of a SEC probe for the possible fraudulent sale of securities to investors. Woodbridge filed for Chapter 11 bankruptcy today citing costs of expansion, litigation, and a government fraud investigation as the reason. According to Woodbridge Wealth’s website, Woodbridge offers First Position Commercial Mortgages, Secondary Market Annuities and a Commercial Bridge Loan Fund. Woodbridge has reportedly raised approximately 1 billion dollars from investors around the country through agents such as Barry Kornfeld and First Financial Tax Group.

Woodbridge Group of Companies’, aka Woodbridge Wealth, Declares Bankruptcy

December 4, 2017 | Silver Law Group

Sherman Oaks, California-based Woodbridge Group of Companies (“Woodbridge Group”) filed for chapter 11 bankruptcy amidst a Securities and Exchange Commission (the “SEC”) investigation. Woodbridge Group cited costs of expansion, litigation and a government fraud investigation as some of the reasons for filing for bankruptcy protection.

According to court papers, Woodbridge Group raised $226 million from over 1,500 investors and owes approximately $750 million to an estimated 8,998 noteholders. In a Woodbridge Group press release, the company stated that the chapter 11 bankruptcy proceeding will be a debt recapitalization.

Woodbridge Group’s bankruptcy filing comes in light of what appears to be a rather contentious SEC investigation that has been going on for over a year. The SEC investigation concerns potential fraudulent sales of securities, according to court documents. The SEC has not brought any formal charges against Woodbridge Group yet.

Woodbridge Wealth Securities Attorney

December 4, 2017 | Silver Law Group

Woodbridge Wealth Securities Attorney

The SEC has an important purpose within the United States financial markets and that purpose is to regulate a fair and transparent economy. The SEC regularly looks into allegations of fraud within financial institutions to ensure that the interests of investors are protected. When the SEC decides to launch an investigation, the process is exhaustive; however, it is necessary to uncover whether that particular financial entity has in fact committed fraud. Recently, the SEC has decided to investigated Woodbridge Wealth and their affiliate group of companies.

Important Information Regarding Woodbridge Wealth

Woodbridge Wealth and Woodbridge Group Victims

December 4, 2017 | Silver Law Group

As a prospective investor, it is important that you are regularly researching the nature of both the transactions and investment firms that you are investing with. The reason for this is that there are many opportunities to lose a substantial amount of investment capital by investing with firms that are not complying with SEC regulations within the United States.

This is precisely why it is best to be well-informed about each and every investment trade that you are putting your capital towards. This way, you can avoid being subject to investment fraud. That said, it is important to be aware of which firms are undergoing investigations by the SEC.

Background on Woodbridge Wealth

Woodbridge Wealth and Woodbridge Group Losses

December 4, 2017 | Silver Law Group

Woodbridge Wealth Losses

There are many different investment opportunities out there on the market regarding securities both registered and unregistered. Where this market gets quite complex is when investors are not provided with the proper information to make a sound decision on their investment.

Due to the complexity of these transactions, there is an opportunity for an investment firm to take advantage of investors that do not have a strong awareness of the financial sector and, as a result, engineer hidden clauses with opportunities to make additional profits through excessive fee charging.

Woodbridge Wealth Investment Fraud Lawyers

December 4, 2017 | Silver Law Group

Recently, there has been a great deal of intrigue regarding Woodbridge Wealth and their affiliated limited liability companies in terms of their potential involvement in allegations of fraud, trading of unregistered securities, and permission of transactions with unlicensed brokers while simultaneously raising more than $1 billion in capital from investors.

Due to these suspicions and the substantial amount of capital involved, the SEC has decided to formally investigate Woodbridge Wealth and their affiliates. If you have invested with Woodbridge Wealth or one of its affiliates, it is important that you carefully review the details of your investment and stay informed regarding their pending investigation.

Important Information Regarding Woodbridge Wealth

Woodbridge Wealth’s Potential Fraud

December 4, 2017 | Silver Law Group

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.

What the SEC Says About Woodbridge Wealth

December 4, 2017 | Silver Law Group

The SEC handles the protection of fostering transparent and competitive markets that are financially sound. In order to achieve this, the SEC issues regular fraud warnings regarding certain types of financial instruments in order to protect consumers and brokers. The SEC’s recommendations can be used as a useful tool to protect both your present and future investment opportunities.

The SEC recommends caution when it comes to the trading of unregulated securities, particularly when they are presented to consumers in the form of mortgages that promise a high yield of returns.

One such firm that is undergoing an investigation by the SEC is Woodbridge Wealth. Investors that have invested with any of their affiliates should review their investment agreements and get a second opinion by an experienced securities attorney.