Thirteen more people have been charged in relation to a $1.2 billion Ponzi scheme that was shut down last year, according to WealthManagement.com. Along with the five unregistered brokers charged in August, these new defendants are accused of selling unregistered securities worth $350 million in total, the publication writes.
The Fines and Deals of the Woodridge Defendants
In December 2017, the Securities and Exchange Commission froze the assets in Woodbridge Group of Companies’ unregistered funds and charged Robert Shapiro, the owner, with defrauding over 8,400 investors, the publication writes. Now, a further 13 people from 10 different companies have been charged with selling unregistered Woodbridge funds, according to WealthManagement.com.
One of the newly accused is Jordan Goodman, who allegedly promoted Woodbridge without declaring that he was paid to do so, according to the SEC, the publication writes. Goodman settled the charges for a $2.29 million fine, a $100,000 penalty, prejudgment interest of $315,850 and a ban from the industry or trading penny stocks, according to the publication. However, he neither admitted nor denied the charges, WealthManagement.com writes.
Three of the August defendants — Albert Klager, Barry Kornfeld and Ferne Kornfeld— are also banned from the industry and trading penny stocks after settling without admitting or denying the charges, according to the publication. Klager agreed to return $1.36 million and $278,908 in prejudgment interest and pay a $100,000 penalty, WealthManagement.com writes. The Kornfelds agreed to pay back $3.69 million, $690,497 in prejudgment interest and $650,000 in penalties, according to the publication.
The SEC continues investigating the Woodbridge scheme and aims to refund affected investors and hold those who aided the fraud accountable, according to Eric Bustillo, director of the SEC’s Miami Regional Office, WealthManagement.com writes.