- January 26, 2019
- Despain Financial Corp
The Wolper Law Firm is currently investigating claims against Jay Weiser, a former Financial Adviser at Despain Financial Corp. in Collinsville, Illinois. Jay Weiser has been in the securities industry since 1986 and previously worked at PRUCO Securities Corp.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on January 17, 2019, FINRA sanctioned Jay Weiser after he “refused to provide documents and information requested by FINRA in connection with its investigation into his sale of Woodbridge Wealth promissory notes to investors.
For a full copy of the FINRA sanction, click https://www.finra.org/industry/disciplinary-actions/finra-disciplinary-actions-online?search=2018058604101
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. Jay Weiser is allegedly one of the outside financial professionals that sold the fraudulent notes to unsuspecting customers.
In December 2016, Woodbridge declared bankruptcy.
Separately, Jay Weiser was discharged by Des Pain Fianncial Corp. in June 2018 for allegedly selling “Regulation D Products and Life Insurance to them that were not suitable to their situation.”
In addition, Jay Weiser has pending customer complaint for allegedly recommending unsuitable investments with alleged damages of $498,047.
For a copy of the Jay Weiser’s CRD, click https://brokercheck.finra.org/individual/summary/1511042#disclosuresSection.
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.
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer 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. We can be reached at 800.931.8452 or by email at email@example.com.