Colorado Registered Investment Firm Tied to Woodbridge Ponzi Scheme

Posted on March 13th, 2018 at 3:58 PM
Colorado Registered Investment Firm Tied to Woodbridge Ponzi Scheme

From the Desk of Jim Eccleston at Eccleston Law LLC:

Colorado Springs registered investment firm, Carrier Financial Services, LLC and its owner, Laurent Carrier have agreed to give up their Colorado securities licenses as a result of their involvement in selling unregistered securities from the Woodbridge Group of Companies (Woodbridge).

More specifically, according to an investigation by the Colorado Division of Securities, Carrier Financial Services sold unregistered First Position Commercial Mortgages from Woodbridge to at least 50 investors for a total amount of $5.1 million.

In December 2017, the SEC filed a securities action in Florida, accusing Woodbridge of defrauding more than 8,400 investors through its real estate investment deals. Moreover, 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, county club memberships, fine wine, and chartering private planes.

Around the same time of the lawsuit, Woodbridge filed for Chapter 11 bankruptcy protection. Woodbridge stated the reasons for the bankruptcy filing relate to the fact that it owes $750 million to noteholders as its primary debt along with having incurred significant compliance costs. 

Investors need to be concerned about Woodbridge and the future of their debt or equity investments. Investors who have invested in Woodbridge through a financial advisor, and have suffered losses, 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 advisors including Broker Litigation & ArbitrationStrategic Consulting ServicesRegulatory  MattersTransition Contract Review, 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

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