SEC Fees Unregistered Dealer for Promoting Woodbridge Securities

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A Knoxville, Tenn.-based unregistered dealer and his agency took dwelling greater than $three.5 million in commissions promoting allegedly fraudulent securities from Woodbridge Group and 1 World Securities to greater than 630 retail buyers over a two-year interval, in line with Securities and Alternate Fee claims.

The fees towards Henry J. “Trae” Wieniewitz and his agency Wieniewitz Monetary are the newest growth within the fallout of Woodbridge, which declared chapter in December 2017 after the SEC charged the fund and proprietor Robert Shapiro with defrauding 1000’s of buyers in a $1.2 billion alleged Ponzi scheme.

Based on the SEC criticism, Wieniewitz and his agency bought unregistered Woodbridge securities from February 2016 to March 2017 and bought securities from 1 World from February 2017 to July 2018 to retail buyers in no less than 5 states; he allegedly claimed the Woodbridge and 1 World securities have been “protected and safe.” Many of those shoppers reportedly invested their retirement financial savings. He was conscious that some states have been inquiring whether or not Woodbridge securities have been respectable when he determined to cease advertising them. 1 World Securities declared chapter in July 2018, with the SEC claiming 1 World’s chairman and CEO “have been syphoning off tens of millions in investor funds to fund a lavish life-style and function unrelated companies.”

In August 2018, the SEC charged 5 unregistered brokers for promoting greater than $243 million in unregistered Woodbridge funds to 1,600 retail buyers, whereas in December 2018, the Fee charged 13 further brokers for unlawfully promoting greater than $350 million in unregistered securities to greater than four,400 buyers. Shapiro, in addition to Ivan Acevedo and Dane R. Roseman (each former administrators of investments at Woodbridge), have been arrested and pleaded not responsible in federal court docket in Los Angeles in April.

Wieniewitz and his agency settled the costs as to legal responsibility with out admitting or denying the allegations and will probably be topic to injunctions. The fee is looking for court-ordered injunctions towards Wieniewitz and his agency, the return of income from the illegal gross sales with curiosity, and extra civil penalties.

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