The law offices of Gana Weinstein LLP are investigating Woodbridge Group of Companies and the investment funds it controls – a series of Woodbridge Mortgage Funds. The Securities and Exchange Commission (SEC) has recently filed a case seeking documents in connection with its investigation of the Woodbridge Group of Companies for possible violations of the securities laws. The California real estate and investment company has raised over $1 billion from investors under suspicious circumstances. Namely that the firm is engaging in a nationwide investment fraud by offering the sale of unregistered securities through unregistered brokers.
The signs that the Woodbridge Funds are about to become a giant fraud debacle are all there. Woodbridge and its agents have been sanctioned by multiple state regulators for offering unregistered securities. Going back to May 2015, the Massachusetts Securities Division imposed a bar on the Woodbridge Mortgage Investment Funds and ordered the companies to permanently cease and desist from selling unregistered or non-exempt securities in the Commonwealth of Massachusetts.
Thereafter, on July 17, 2015, the Texas State Securities Board issued an emergency cease and desist order against Woodbridge Fund 3, the firm’s owner Robert Shapiro (Shapiro), and other parties and ordered them to stop engaging in fraud in connection with the sale of securities in the state of Texas.
On October 4, 2016 the state of Arizona filed a complaint against Woodbridge entities for selling unregistered securities through unregistered brokers. In December 2016, Woodbridge entities and individuals were sanctioned by the state of Arizona.
Recently, the state of Colorado has opened an investigation into Colorado based Woodbridge salesmen including James Campbell, who owns Campbell Financial Group in Woodland Park, and Timothy McGuire of Highlands Ranch. Woodbridge has raised $57 million from 450 Colorado investors and continues to solicit investors through online and radio advertising.
The sprawling investigation is digging up a network of both licensed and unlicensed brokers selling Woodbridge to investors. According to court documents, William M. Holliday is registered with the advisory firm AlO Financial, LLC and sold Woodbridge Funds to investors. In May 2016, the Financial Industry Regulatory Authority (FINRA) suspended broker Frank Capuano who was registered with Royal Alliance Associates in Holyoke, MA. Capuano was alleged to have sold over $1,000,000 of the private notes to Royal Alliance customers and received over $30,000 in commissions. In addition, Elizabeth J. Haskell operating under the Iron Will Advisory Group had a complaint filed against her by the Commonwealth of Pennsylvania for selling Woodbridge to a client.
While the SEC has spent the past year investigating Woodbridge, the firm continues to raise millions of dollars from investors.
Some of the Woodbridge entities or Woodbridge Funds include the following:
- WMF Management, LLC
- Woodbridge Group of Companies, LLC
- Woodbridge Mortgage Investment Fund 1, LLC
- Woodbridge Mortgage Investment Fund 2, LLC
- Woodbridge Mortgage Investment Fund 3, LLC
- Woodbridge Mortgage Investment Fund PA, LLC
- Woodbridge Group of Companies, LLC (DBA Woodbridge Wealth)
Investors who have suffered losses may be able recover their losses through securities arbitration. The attorneys at Gana Weinstein LLP are experienced in representing investors in cases of investment fraud and brokerage firms failure to supervise their representatives. Our consultations are free of charge and the firm is only compensated if you recover.