The Wolper Law Firm is currently investigating claims against Frank Dietrich, a former Financial Advisor at Quest Capital Strategies in Lake Forrest, California. Frank Dietrich has worked both in the insurance and securities industry. Frank Dietrich obtained his Series 7 license in 2009.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), Frank Dietrich has eight (8) customer complaints principally relating to the alleged unlawful sale of the Woodbridge Mortgage Investment Fund. The aggregate alleged damages from Frank Dietrich’s alleged unlawful sale of these unregistered securities measures in the millions. He was “permitted to resign” by Quest Capital Strategies amidst an investigation regarding his sales practices.
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.
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
If you or someone you know was a customer of Frank Dietrich or invested in the Woodbridge Group of Companies or 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.
Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyers who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. His industry insight, experience and knowledge gives his clients a competitive advantage.