Woodbridge Mortgage Investment Fund Allegedly Implemented Unlicensed Individuals to Sell Unregistered Securities
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 Jason kane and James Booker.
Peiffer Wolf Carr & Kane securities practice lawyers are investigating Woodbridge Mortgage Investment Fund’s alleged implementations of unlicensed individuals selling unregistered securities.
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 are encouraged to contact attorneys Jason kane or James Booker with any useful information or for a free, no obligation discussion about their options.
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 said offerings were completed using unregistered securities, according to the aforementioned 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.
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.
Furthermore, 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, said 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 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 being reviewed by attorneys Jason kane and James Booker.
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 Peiffer Wolf Carr & Kane securities lawyers often represent investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Woodbridge Mortgage Investment Fund’s alleged implementations of unlicensed individuals. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of Woodbridge Mortgage Investment Fund’s alleged implementations of unlicensed individuals may contact the securities lawyers at Peiffer Wolf Carr & Kane, Jason kane or James Booker, for a free no-obligation evaluation of their recovery options, at 216-589-9280 or via e-mail at firstname.lastname@example.org.