Newport Beach, California (GLOBE NEWSWIRE) – December 8, 2017 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A., www.nasd-law.com, has commenced an investigation into the sales of notes by brokerage firms and financial advisors who recommended Woodbridge Group of Companies, LLC “(Woodridge”) to their customers. Woodbridge, a luxury real estate developer, is currently being investigated by the Securities and Exchange Commission (“SEC”) for the direct and indirect sale of unregistered securities.
In recent days, amidst the SEC investigation, the CEO of Woodbridge, Robert Shapiro resigned. Following the resignation of their CEO, Woodbridge filed for chapter 11 Bankruptcy. Brokerage firms and financial advisors who sold securities in Woodbridge had a duty to their customers to perform their due diligence and recommend suitable investments to their clients. This would require the brokerage firms and financial advisors to evaluate the risks and client objectives before recommending securities.
Documents in the SEC investigation and Bankruptcy filing suggest Woodbridge raised more than $1 billion in various funds sold to investors. While all $1 billion is not currently accounted for, it appears that investments were made in many states. Massachusetts, for instance barred Woodbridge and its entities from selling securities in the state. Many other states recently began investigating the sales practices of Woodbridge within their borders regarding the sale of securities.
The sole purpose of this release is to investigate the sales practices and financial misconduct of brokerage firms and financial advisors in connection with the sale of Woodbridge to their customers. Investors who purchased these investments are encouraged to contact Lawrence L. Klayman, Esq. of Klayman & Toskes, P.A. at (888) 997-9956, or visit our website at www.nasd-law.com.