The Securities and Exchange Commission brought charges last month against thirteen individuals and ten companies for unlawfully selling securities of Woodbridge Group of Companies, LLC to retail investors. The thirteen individual defendants were among Woodbridge’s top revenue producers, selling more than $350 million of unregistered securities to more than 4,400 investors. Making matters worse, the defendants marketed the security as a “safe” and “secure” investment, according to the SEC allegations.
In fact, the Woodbridge Group collapsed into bankruptcy in December 2017 and the SEC had previously charged the company, its owner, and others with operating a $1.2 billion Ponzi scheme, and charged five of its top Florida-based sales agents for securities and broker-dealer registration violations. Our firm has previously blogged about the Woodbridge Group charges in this space.
The individual parties and companies named in the SEC’s most recent allegations are: Robert S. “Lute” Davis, Jr., Donald Anthony Mackenzie, Jordan E. Goodman, Aaron R. Andrew, Jeffrey L. Wendel, Alan H. New, David N. Knuth, Randy T. Rondberg, Richard Fritts, Marcus Bradford Bray, Gregory W. Anderson, Claude Steven Mosley, Gregory A. Koch, and companies Old Security Financial Group Inc., Paramount Financial Services Inc. d/b/a Live Abundant, Wendel Financial Network LLC, Synergy Investment Services LLC, Trager LLC, Fritts Financial LLC, Bradford Solutions LLC, Balanced Financial Inc., Security Financial LLC, and Koch Insurance Brokers LLC.