Alan New Has Five Pending Customer Complaints For Selling The Fraudulent Woodbridge Mortgage Investment Fund
The Wolper Law Firm is currently investigating claims against Alan New, a former Financial Advisor at NY Life Securities in Fort Wayne, Indiana. Alan New first entered the securities industry in 2002.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in 2018 alone, Alan New has been the subject of five (5) customer complaints arising out of his sale of the Woodbridge Mortgage Investment Fund, which has turned out to be a ponzi scheme.
For years, the Woodbridge Group of Companies, operated a ponzi scheme in which it sold (through outside financial professionals) promissory notes allegedly backed by mortgages. The investment program turned out to be a $1.2 billion ponzi scheme and Woodbridge’s principal, Robert Shapiro is currently under criminal indictment.
According to the SEC’s complaint filed against Woodbridge, the Woodbridge business model was to borrow money from investors in exchange for promissory notes, maturing usually in 12 or 18 months. The notes had an annual interest rate of 5% to 8% payable monthly. The investors’ money was supposed to be issued to lenders in the form of securitized mortgages, but rarely was, according to the SEC. Alan New is allegedly one of the outside financial professionals that sold the fraudulent notes to unsuspecting customers.
In December 2016, Woodbridge declared bankruptcy.
So far, five customers have alleged that Alan New sold them fraudulent Woodbridge Mortgage Investment Fund notes.
- January 2018—“Claimants allege that…they were sold unregistered and fraudulent investments in Woodbridge Mortgage Investment Fund.” Alleged damages are $100,001.
- March 2018—“Claimants allege that…they were sold unregistered and fraudulent investments in Woodbridge Mortgage Investment Fund.” Alleged damages are $550,500.
- April 2018—“Claimants allege that…they were sold unregistered and fraudulent investments in Woodbridge Mortgage Investment Fund.” Alleged damages are $319,000.
- April 2018—“Claimants allege that…they were sold unregistered and fraudulent investments in Woodbridge Mortgage Investment Fund.” Alleged damages are unspecified.
- April 2018—“Plaintiff alleges that material facts and the risks associated with an unregistered investment purchased in Woodbridge Mortgage Investment Fund…were not disclosed.” Alleged damages are $400,000.
If you or someone you know was a customer of Alan New or the Woodbridge Mortgage Investment Fund and you experienced investment losses, please contact the Wolper Law Firm at 800.931.8452 or by email at firstname.lastname@example.org to discuss your specific situation and the legal options available. The Wolper Law Firm represents investors nationwide in securities litigation and arbitration.
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