Broker Alan New Is Barred By FINRA, Targeted In SEC Lawsuit Over Woodbridge Sales

The Financial Industry Regulatory Authority (“FINRA”) reportedly barred securities broker Alan Harold New (CRD#: 2892508, Fort Wayne, Indiana) in April 2020. This means that New, who last worked for NYLife Securities, cannot be a securities broker for all FINRA member securities firms. Moreover, New is involved in an SEC lawsuit in regard to an alleged Ponzi scheme related to Woodbridge Group of Companies. In addition, 15 clients filed disputes since 2018 concerning New’s actions. Here’s more.

FINRA Bars Alan New For Refusing To Comply With investigation

FINRA reportedly barred New on April 4, 2020 for violating FINRA rules by refusing to cooperate with investigators. The financial watchdog investigated New this year for alleged sales of unregistered and fraudulent Woodbridge Mortgage Investment Funds. FINRA’s February 2020 requests specifically focused on the Woodbridge investments. New opted against complying with investigative requests, instead accepting a bar.

SEC Lawsuit About New’s Woodbridge Sales Through Synergy Investment Services

Apparently, SEC sued New in December 2018 for allegedly violating securities laws with respect to his Woodbridge sales. SEC says that New, David N. Knuth and Fort Wayne, Indiana-based Synergy Investment Services (the defendants in the lawsuit) together sold $15 million in Woodbridge’s unregistered securities to 100 or more investors – some or all of whom were told that the investments were safe and secure. New reportedly helped secure $1.5 million in commissions. Woodbridge, who has since been the target of substantial SEC litigation, stopped paying investors monthly payments when it filed for bankruptcy. Critically, SEC says that investors haven’t received a return of their principal. The case against New is ongoing.

Client Disputes Concerning Woodbridge Investments Purchased Through Alan New

Notably, a NYLife Securities client disputed Alan New’s sales practices in a December 2019 lawsuit. Allegedly, New misled the client about investing in Woodbridge promissory notes. The allegations referenced in this dispute also include that the client purchased the investment through New privately – not through NYLife Securities. Evidently, NYLife Securities settled this matter through making a $39,000 payment to the client in February 2020.

New Supposedly Sells NYLife Securities Client Woodbridge Investments In Private Transaction

Also, a NYLife Securities client brought a dispute about Alan New in regard to Woodbridge. Namely, the client alleged in this October 2019 dispute that the investment purchased through New was an unregistered security issued by Woodbridge Mortgage Investment Funds. The client supposedly sustained losses on Woodbridge. Because of this, NYLife Securities opted to compensate this client to resolve the matter.

Investor Indicates That Alan New Did Not Disclose Investment Risks

Evidently, a third investor brought a suit about Alan New in February 2019. Notably, the investor says that New did not disclose “material facts” and “risks” of Woodbridge Mortgage Investment Fund. Apparently, this matter settled through a $37,500 payment to the client.

Losses From Investing In Woodbridge Securities Through New?Lars Soreide AVVO 2020 Top Lawyer

Apparently, New denies allegations of his sales practice violations. Have you experienced losses by investing with him? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have incurred losses due to the actions of securities brokers and financial advisors.