Did former Nylife Securities LLC financial advisor Joel Flaningan (CRD# 5664958) recommend you invest in the Woodbridge Group of Companies? Flaningan was registered with Nylife Securities LLC in Fort Wayne, Indiana from 2010 to May 2018 when he was terminated regarding, “Mr. Flaningan was terminated after allegations he was involved in the solicitation of New York Life (“NYL”) clients to invest in an unregistered entity named Woodbridge Mortgage Investment Fund (“Woodbridge”),which has filed for bankruptcy protection and is the subject of an action filed by the SEC. Mr. Flaningan failed to disclose any involvement with Woodbridge to NYL. Neither Woodbridge nor any related investment or entities were ever associated directly or indirectly with NYL or its affiliates in any way.”
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.
Flaningan has been the subject of one customer complaint, according to his CRD report:
April 2018. “Plaintiff alleges that material facts and the risks associated with an unregistered investment in Woodbridge Mortgage Investment Fund purchased in April 2017 were not disclosed. Plaintiff is seeking the return of his investment ($65,000) less any income received, plus 8% interest, costs and attorney’s fees.” 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, Nylife Securities LLC may be liable for investment or other losses suffered by Flaningan’s 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.
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