Barred Florida Broker Was Selling Loans for Woodbridge Wealth
Barry Michael Kornfield (CRD#: 1490377), a registered broker who was most recently employed by Brookstreet Securities Corporation at an office in Coral Springs, Florida, was permanently barred from the securities industry in 2010. This FINRA enforcement action came after the Securities and Exchange Commission (SEC) charged Mr. Kornfield, and nine other brokers, with fraud related to the sale of unsuitable mortgage-backed securities.
Disturbingly, in recent days, it has been reported that Barry Kornfeld has been selling complex mortgage loan products for Woodbridge Wealth. Notably, Woodbridge is facing a major SEC investigation. On December 4th, 2017, the company filed for Chapter 11 bankruptcy protection. Further, Woodbridge Wealth has now stopped paying distributions to its investors. Here, our experienced Miami investment fraud lawyers discuss the recent developments regarding this company and the potential fraud scheme it perpetuated.
Four Things Investors Need to Know About Woodbridge
- The Company Sold Complex Mortgage-Related Financial Products
Woodbridge Wealth has been selling complex commercial mortgage notes to investors across the country. In some cases, Woodbridge has marketed these products to registered financial advisors, who then pushed the products on their clients. In other cases, Woodbridge has employed non-registered individuals, such as Barry Michael Kornfield, who go about selling mortgage products directly to investors.
- False Promises Were Made to Innocent Investors
Woodbridge has been aggressively marketing their commercial mortgage funds to investors as a way to make an above-market return. Furthermore, the company promises very little risk. Yet, it has become clear that these products have been severely misrepresented. The company, and its representatives, were vastly underselling the level of risk associated with these investments.
- The Company is Under Investigation for Fraud and the Sale of Unregistered Securities
In recent months, Woodbridge has come under investigation by the SEC. Further, several different state-level securities regulators are conducting their own inquiries into the practices of Woodbridge and its representatives. The SEC suspects that the company may have committed fraud. Additionally, several state officials believe that unregistered Woodbridge representatives were improperly selling unregistered securities to investors.
- Many Investors Stand to Lose Out
Unfortunately, this may be another case in which many innocent investors stand to lose a substantial amount of money. Already, the company has stopped making distributions to investors. This is a very bad sign, and things may get worse before they get better. The SEC investigation is far from complete. If you or a loved one has invested in any Woodbridge Wealth financial products, it is imperative that you consult with a qualified investment fraud attorney as soon as possible.
Contact Our Miami Securities Fraud Attorneys Today
At Carlson & Associates, P.A., our experienced Miami investment fraud lawyers have assisted many investors. If you lost money investing in Woodbridge Wealth financial products, we are interested in speaking to you. Please contact us today at 1-(305)-372-9700 for your fully private initial claim evaluation. From our office in Miami, we represent clients throughout the state of Florida, including in Miami Beach, West Palm Beach, and Fort Lauderdale.