Did Former Signator Investors, Inc. Financial Advisor David Ferwerda Recommend Investments in Woodbridge Group of Companies Ponzi Scheme?
Posted on Monday, November 12th, 2018 at 6:19 pm
Erez Law is currently investigating former Signator Investors, Inc. financial advisor David Ferwerda (CRD# 832431) who was barred by FINRA for not cooperating with an investigation into the Woodbridge Group of Companies Ponzi Scheme. Ferwerda has been registered with Signator Investors, Inc. in Grand Rapids, Michigan from 2012 to March 2018, when he was terminated regarding, “Involvement in the sale of unapproved outside investments in violation of firm policy.”
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. Monetary claims against Woodbridge remain pending.
In October 2018, FINRA barred Ferwerda after he “consented to the sanction and to the entry of findings that he failed to provide FINRA with requested documents and information, during the course of an ongoing examination, in connection with FINRA’s review of Ferwerda’s participation in sales of notes related to a group of unregistered investment companies and investments in another company.”
In March 2018, the Michigan Department of Licensing and Regulatory Affairs opened an investigation into Ferwerda: “Investigation regarding the involvement in the sale of unregistered securities.”
Ferwerda has been the subject of one customer complaint, according to his CRD report:
July 2018. “Client alleges that the representative provided incorrect information resulting in potential tax liabilities.” 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, Signator Investors, Inc. may be liable for investment or other losses suffered by Ferwerda’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.