Eccleston Law: For Investors. For Advisors
About
Who We Are
Testimonials
Disclaimers
Attorneys
For Advisors
Broker Transition
Transition Negotiations
Employment Matters
State Registration Problems & Discipline
FINRA Matters
Promissory Note Matters
Team/Parnership Disputes
CFP Board Matters
FINRA Enforcement Matters
State Registration Problems & Discipline
Transition Negotiations
Broker Litigation & Arbitration
Employment Matters
Regulatory Matters
Strategic Consulting
Whistleblower Law
Promissory Note Matters
Compliance Protection
Lawyer Referral Network
Expungement of CRD/BrokerCheck Disclosures
For Investors
Securities Fraud
Breach of Fiduciary Duty
Negligent Investment Management
Unauthorized Trading
Lawyer Referral Network
News & Articles
News
Articles
Financial Counsel Blog
Videos
Newsletter Signup
Contact
Site Menu
About
Who We Are
Testimonials
Disclaimers
Attorneys
For Advisors
For Advisors: Overview
Broker Transition
Broker Transition Overview
Transition Negotiations
Employment Matters
State Registration Problems & Discipline
FINRA Matters
Promissory Note Matters
Team/Parnership Disputes
CFP Board Matters
FINRA Enforcement Matters
State Registration Problems & Discipline
Transition Negotiations
Broker Litigation & Arbitration
Employment Matters
Regulatory Matters
Strategic Consulting
Whistleblower Law
Promissory Note Matters
Compliance Protection
Lawyer Referral Network
Expungement of CRD/BrokerCheck Disclosures
For Investors
For Investors: Overview
Securities Fraud
Breach of Fiduciary Duty
Negligent Investment Management
Unauthorized Trading
Lawyer Referral Network
News & Articles
News
Articles
Financial Counsel Blog
Videos
Newsletter Signup
Contact

Sales in Unregistered Securities Are Soaring but It Comes at a Cost - Part 1

Posted on May 2nd, 2019 at 4:40 PM
Sales in Unregistered Securities Are Soaring but It Comes at a Cost - Part 1

From the Desk of Jim Eccleston at Eccleston Law LLC:

This is the first in a series which highlights an InvestmentNews article concerning the recent uptick in the sale of unregistered securities and how those transactions have resulted in the proliferation of fraudulent schemes.

To begin, Regulation D offerings, which are a public type of offering, has more than quadrupled from 18,295 in 2009 to 37l,785 in 2017. Notably, brokers and investment advisers are able to sell those private securities to the public without facing the same regulatory scrutiny as with registered securities, making those offerings opaque and hazardous. Moreover, brokers or investment advisers often market the investment as an alternative to the stock market that can purportedly beat the return on bonds or bank deposits. In addition, Regulation D investments are known to be marketed heavily at investment seminars, in ads on the radio and in local newspapers.

Woodbridge Group of Companies (Woodbridge), which has recently been the subject of an SEC investigation, is an example of a Regulation D offering which was able to initially avoid public scrutiny until investors faced realized losses.

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 its investors through 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.

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 Fraud, Compliance Protection, Breach of Fiduciary Duty, FINRA 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: james eccleston, eccleston law, eccleston law llc, eccleston, securities, unregistered securities, regulation d, woodbridge group, sec, lawsuit

Share

Return to Archive

Latest Articles
Advisor Barred for Failing To Comply with FINRA Enforcement Requests
April 9th, 2021 at 10:29 AM
Interactive Brokers and Schwab Plan to Fight $4.6 Million Arbitration Award
April 8th, 2021 at 2:30 PM
Read More »
Latest News
Affidavit of Merit Received in Eccleston Law’s $25 Million Legal Malpractice Action
April 1st, 2021 at 9:36 AM
Jim Eccleston Awarded Prestigious Recognition
February 26th, 2021 at 9:13 AM
Read More »
Share

Request a Free Consultation

Attorneys are standing by during regular business hours. Call us now for immediate service, or complete the form below and we will contact you as soon as possible.

Your E-mail Address:
 
Chicago
55 West Monroe St.
Suite 610
Chicago, Illinois 60603
(312) 332-0000
(312) 332-0003
New York City
One Liberty Plaza
165 Broadway, 23rd Floor
New York, New York 10006
(312) 332-0000
(312) 332-0003
Boca Raton
2255 Glades Road
Suite 324A
Boca Raton, Florida 33431
(312) 332-0000
(312) 332-0003
2021 © Eccleston Law, LLC.
All Rights Reserved.
The law is continuously changing. Please do not rely on information found on this site without consulting a lawyer to determine if any recent changes in the law may have an impact.