Broker Suspended and Fined by FINRA for Selling $1.39 Million Worth of Woodbridge Promissory Notes Without Authorization from his Firm

Posted on June 6th, 2018 at 4:11 PM
Broker Suspended and Fined by FINRA for Selling $1.39 Million Worth of Woodbridge Promissory Notes Without Authorization from his Firm

From the Desk of Jim Eccleston at Eccleston Law LLC:

FINRA has suspended former Securities Service Network (SSN) broker, Peter D. Holler for selling at least $1.39 million worth of promissory notes to at least 19 individuals without disclosing the transactions to his former firm. In addition, along with a 2-year suspension from the industry, FINRA fined Holler $10,000 and ordered him to disgorge $49,790 in commissions from the private transactions.

Most notably, the promissory notes sold by Holler were issued by Woodbridge Group of Companies (Woodbridge), which has been the subject of an SEC investigation. Most recently, Woodbridge agreed to settle a lawsuit filed by the SEC involving allegations that the company ran a $1.2 billion investment fraud scheme that duped more than 8,400 investors.

More specifically, in December 2017, the SEC filed a securities action in federal court in Florida, accusing Woodbridge of defrauding more than 8,400 investors through its real estate investment deals. According to the SEC, the owner of Woodbridge, Robert Shapiro, used new investor money to pay the returns owed to existing investors in a Ponzi-scheme like manner. Meanwhile, Mr. Shapiro and his family spent an exorbitant amount of investor funds for their personal use, such as to pay for luxury automobiles, jewelry, country club memberships, fine wine, and chartering private planes.

According to the terms of the settlement, Woodbridge’s investments will be permanently barred from further violations of the securities laws pursuant to an injunction. The court also will determine at a later date if disgorgement of ill-gotten gains and a civil penalty are appropriate.

Woodbridge currently is in Chapter 11 bankruptcy. Woodbridge filed for bankruptcy around the same time the SEC brought its December lawsuit, claiming that it owes $750 million to noteholders as its primary debt along with having incurred significant compliance costs. 

Investors who have purchased Woodbridge promissory notes through Peter D. Holler, or any other financial advisor, should contact us to determine if there is any recourse to recover their investment losses. 

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston

Return to Archive

TESTIMONIALS

Previous
Next

You guys are good!

Mike L.

LATEST NEWS AND ARTICLES

January 21, 2022
CFP Board Establishes New Appeals Commission

The Certified Financial Planner (CFP) Board of Standards has established a new Appeals Commission. As the name suggests, the Appeals Commission possesses the sole authority to adjudicate appeal hearings.

January 20, 2022
Edward Jones Fails To Convince Supreme Court To Review Federal Preemption of Account Fee Suit

Edward Jones & Co. failed to convince the U.S. Supreme Court to analyze how a federal securities law impacts a client dispute pertaining to fee-based accounts.

January 19, 2022
SEC Charges Texas Entities Over Oil and Gas Fraud

The Securities and Exchange Commission (SEC) has charged The Heartland Group Ventures, Heartland Production and Recovery, six other Heartland-affiliated entities, four Heartland-affiliated individuals as well as several oil and gas operators.