Silver Law Group Managing Partner Scott Silver was again quoted in Investment News regarding the new charges by the SEC against the alleged real estate investment company Woodbridge.
“I think these types of investments are a massive problem, and it’s bigger than people give credence to,” Mr. Silver said. “Look at the ads in the back of the newspaper, or go to retirement conferences in South Florida. Companies there are pitching investments untethered to the stock market that are not securities.”
Much like the recent bankruptcy of 1st Global, Woodbridge was found to be operating a huge Ponzi scheme worth approximately $1.2 billion (and is also located in Florida.) At the center of this operation are individuals acting as brokers and investment advisors. Many of these unregistered salespeople are former brokers and advisors who have been barred by FINRA after a customer complaint, employment separation or other unresolved administrative issue.
The SEC charged five individuals with unlawfully selling the Woodbridge Group of Companies, even though they were not licensed, authorized or allowed to sell securities. They are:
- Barry Kornfeld, a former broker previously barred by FINRA
- Fern Kornfeld, his wife
- Lynette M. Robbins
- Andrew G. Costa
- Albert D. Klager
Mr. Silver adds, “The theme of the two, Woodbridge and 1 Global Capital, is unregistered advisers looking for loopholes in the law to sell these things without calling them securities. They span from real estate investments to financing-type companies to diamonds. There has also been an uptick in the sale of precious metals. The creativity of these con artists is constant.”
Were You Conned By An Unregistered Stockbroker?
If you’ve invested with Woodbridge before they filed for bankruptcy last year, call Scott Silver to find out what your options are. Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. Most cases handled on a contingent fee basis. This means that you won’t any pay legal fees unless we are successful. Call us toll free at 800-975-4345, or use our online contact form to get in touch.