Erez Law is currently investigating former HD Vest Investment Services financial advisor Jerry Raines (CRD# 4578689) regarding losses sustained from investments in the Woodbridge Group of Companies fraud. Raines was registered with HD Vest Investment Services in Kilgore, Texas from 2014 to 2017.
The Woodbridge Group of Companies is a southern California luxury real estate developer that missed payments on notes sold to investors and filed chapter 11 bankruptcy in December 2017, along with 275 subsidiaries and affiliates, citing “unforeseen costs associated with ongoing litigation and regulatory compliance.” It is alleged that elderly and other investors invested millions of dollars into the Woodbridge Group of Companies investment programs. The investors were allegedly told that these were secure investments in real estate, which is not the case as evidenced by these bankruptcy proceedings.
The SEC is investigating whether 235 LLCs have violated the anti fraud, broker-dealer and securities registration provisions of the federal securities laws in connection with the Woodbridge Group of Companies receipt of more than $1 billion of investor funds from thousands of investors nationwide. The SEC is investigating the offer and sale of unregistered securities, the sale of securities by unregistered brokers and the commission of fraud in connection with the offer, purchase and sale of securities.
Raines has been the subject of two customer complaints in 2018, according to his CRD report:
- February 2018. “Raines sold Claimant Woodbridge Mortgage Investment Funds 2 & 2. Dates referenced include April 2013 and April/May 2014. Allegations include unsuitable recommendations and misrepresentation.” The customer is seeking $450,000 in damages and the case is currently pending.
- February 2018. “Claim states that Raines sold Claimant Woodbridge Mortgage Investment Find 2, LLC. Woodbridge has filed bankruptcy. Dates referenced May 2014. Allegations include unsuitable recommendations and misrepresentation.” The customer is seeking $50,000 in damages and the case is currently pending.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, HD Vest Investment Services may be liable for investment or other losses suffered by Raines’ customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.