The Securities and Trade Fee has charged 13 extra people associated to a $1.2 billion Ponzi scheme the regulator shut down final 12 months.
Woodbridge Group of Firms filed for chapter in December 2017 after the SEC froze the property in its unregistered funds and charged proprietor Robert Shapiro for defrauding greater than eight,400 traders. In August, the SEC additionally charged 5 unregistered brokers for promoting greater than $243 million in unregistered Woodridge funds to greater than 1,600 retail traders.
The newest spherical of 13 defendants, from 10 completely different corporations, are accused of the identical. In combination, they allegedly offered greater than $350 million of unregistered securities to greater than four,400 traders. The group additionally included Jordan Goodman, a self-described “media influencer,” who touted Woodbridge with out disclosing that he was paid to take action, the SEC mentioned.
Goodman settled the SEC’s prices with out admitting or denying the allegations and agreed to pay a $2.29 million high quality, plus prejudgment curiosity of $315,850 and a $100,000 penalty. He can even be barred from the business and buying and selling penny shares.
Barry Kornfeld, Ferne Kornfeld and Albert Klager, who had been amongst these charged in August, additionally settled with the SEC with out admitting or denying the allegations and agreed to being barred from the business and buying and selling penny shares. The Kornfelds agreed to return property totaling $three.69 million plus $690,497 in prejudgment curiosity and $650,000 in penalties. Klager agreed to pay again $1.36 million, $278,908 in prejudgment curiosity and a $100,000 penalty.
“The SEC has now charged a complete of 18 of Woodbridge’s highest-earning unregistered gross sales brokers who offered greater than $400 million of its securities to retail traders,” mentioned Eric Bustillo, director of the SEC’s Miami Regional Workplace. “Our persevering with investigation of Woodbridge seeks to carry those that aided this large fraud accountable and to return funds to harmed traders.”