How Investors Can Sue Former Securities Service Network, Inc. Financial Advisor Peter Holler for Investments in Woodbridge Mortgage Investment Fund 3A
Posted on Saturday, June 23rd, 2018 at 8:56 am
Were you the victim of former Securities Service Network, Inc. broker Peter Holler (CRD# 838897)? Holler was registered with Securities Service Network, Inc. in Bristol, Tennessee from 2001 to August 2017, when he was terminated regarding, “The representative participated in unapproved and undisclosed outside business activity. The activity involved the offering/sale of the Woodbridge Mortgage Investment Fund 3A, LLC to clients. This product was not approved by the firm for sale.”
In May 2018, FINRA suspended Holler for two years, and sanctioned him to pay $49,790 in disgorgement and $10,000 in civil and administrative penalties and fines after he “consented to the sanctions and to the entry of findings that he engaged in a series of private securities transactions without providing notice to his member firm prior to participating in these private securities transactions, nor did he obtain approval from the firm. The findings stated that Holler solicited investors to purchase promissory notes in a purported real-estate investment fund. Ultimately, Holler sold approximately $1.39 million in the promissory notes to individuals, nine of whom were the firm’s customers. Holler received $49,790 in commission in connection with these transactions. Holler also purchased approximately $75,100 of the promissory notes for himself.”
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.
Holler has been the subject of five customer complaints in 2018, according to his CRD report:
November 2018. “Client alleges that Mr. Holler sold her fraudulent investments in the Woodbridge Mortgage Fund 1 LLC. The investment was for. The transaction took place in November 2016.” The customer sought $100,000 in damages and the case was settled for $39,306.34.
October 2018. “Through their attorney the Claimants allege that Mr. Holler recommended and sold to them investments in the Woodbridge Mortgage Fund promissory notes. The Claimants allege that the investments were not approved by SSN and were in-fact fraudulent investments.” The customer sought $75,000 in damages and the case was settled for $25,000.
August 2018. “Claimants allege that in 2016 and 2017 Mr. Holler sold them fraudulent investments into the Woodbridge Mortgage Investment Funds 3 & 4. They allege these investments were not approved by Mr. Holler’s broker-dealer, Securities Service Network.” The customer sought $125,000 in damages and the case was settled for $50,319.30.
May 2018. “Claimants allege that in 2017 Mr. Holler sold them investments in an alleged fraudulent unregistered security called Woodbridge Mortgage Investment Fund 4 LLC. One of the investments actually occurred after Mr. Holler terminated from SSN.” The customer sought $490,000 in damages and the case was settled for $198,990.45.
April 2018. “Claimant’s allege that Mr. Holler sold them fraudulent investments in the Woodbridge Mortgage Investment Fund 3A LLC. The transaction occurred on 12/21/2016.” The customer sought $150,000 in damages and the case was settled for $58,883.91.
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, Securities Service Network, Inc. may be liable for investment or other losses suffered by Holler’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.