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Did You Lose Money with Former Nylife Securities LLC Financial Advisor Alan New and the Woodbridge Group of Companies Ponzi Scheme?

Posted on Thursday, May 17th, 2018 at 6:49 am    

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Erez Law is currently investigating former Nylife Securities LLC financial advisor Alan New (CRD# 2892508) regarding the Ponzi scheme. New has been registered with Nylife Securities LLC in Fort Wayne, IN from 2004 to August 2016.

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.

New has been the subject of five customer complaints in 2018, according to his CRD report:

April 2018. “Plaintiff alleges that material facts and the risks associated with an unregistered investment purchased in Woodbridge Mortgage Investment Fund in December 2013 were not disclosed. Claimant seeks recovery of damages in the amount of at least $400,000.00.” The customer is seeking $400,000 in damages and the case is currently pending.

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.

April 2018. “Claimants allege that in April 2014, June 2015 and February 2016 they were sold unregistered and fraudulent investments in Woodbridge Mortgage Investment Fund. Claimants seek to recover damages of at least $319,000 and lost opportunity costs, punitive damages, costs and interest.” The customer is seeking $319,000 in damages and the case is currently pending.

March 2018. “Claimant alleges that in July 2015, April 2016 and December 2016 he was sold unregistered and fraudulent investments in Woodbridge Mortgage Investment Fund . Claimant seeks to recover damages of at least $550,500 and lost opportunity costs, punitive damages, costs and interest.” The customer is seeking $550,500 in damages and the case is currently pending.

January 2018. “Claimants allege that in November 2013 and July 2014 they were sold unregistered and fraudulent investments in Woodbridge Mortgage Investment Fund. Claimants seek to recover damages of at least $100,001 and lost opportunity costs, punitive damages, costs and interest.” The customer is seeking $100,001 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, Nylife Securities LLC may be liable for investment or other losses suffered by New’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.