SEC $1.2bn Woodbridge Ponzi

• Charges against further 13 brokers, who sold Woodbridge securities to investors.
• Also charged 10 companies who had unlawfully sold these Woodbridge securities.

Woodbridge Background

• Woodbridge collapsed into bankruptcy in Dec. 2017. and SEC previously charged
  company, its sowner and others with operating $1.2bn Ponzi scheme.
• 13 individual defendants charged, were among company’s top revenue producers.
• They sold over $350mn of its unregistered securities to more than 4,400 investors.

Dec. 2018 New Defendants

• Robert Davis, Donald Mackenzie, Jordan Goodman, Aaron Andrew, Jeffrey Wendel, Alan New, David Knuth, Randy Rondberg, Richard Fritts, Marcus Bray, Greg Anderson, Claude Steven Mosley, Gregory Koch, their companies Old Security Financial Group, Paramount Financial Services, Wendel Financial, Synergy Investment, Trager, Fritts Financial, Bradford Solution, Koch, Balanced Financial, and Security Financial.

Settlement

• Jordan Goodman pay $2.29mn disgorgement, $315k in interest, and $100k penalty.
• Synergy Investment, New and Knuth court to determine disgorgement, and interest.
• The Kornfelds agreed to disgorgement of $3.69mn plus $690k prejudgment interest.
• Additionally, Barry Kornfeld pay $500k penalty and Ferne Kornfeld a $150k penalty.
• Klager $1.36mn in disgorgement, $278k prejudgment interest, and a $100k penalty.