ALAN NEW Charged In SEC Complaint

Soreide Law Group is evaluating possible claims on behalf of investors who sustained losses from NYLife Securities LLC broker Alan New (CRD#: 2892508, Fort Wayne, Indiana). Notably, SEC filed a Complaint against New on December 17, 2018 in the United States District Court for the Southern District of Indiana (Case#: 1:18-cv-03975). According to the SEC, New sold his clients investments in Woodbridge Group of Companies LLC - a purported Ponzi scheme.

SEC Files Complaint Suggesting Alan New Sold Unregistered Woodbridge Securities

SEC’s Complaint alleges that from 2013 to 2017, Alan New violated federal securities laws (Securities Act of 1933 and Securities Exchange Act of 1934) by selling Woodbridge Group of Companies LLC securities. Allegedly, NYLife Securities, who New worked for between 2004 and 2016, did not offer the securities. More importantly, the Commission claimed that those securities were unregistered and not exempt from SEC’s registration laws. Because of this, New was actually prohibited under federal law from selling the Woodbridge investments, according to the SEC.
Supposedly, New and two other defendants (David N. Knuth and Synergy Investment Services, LLC) sold $15,000,000 in unregistered Woodbridge securities. Allegedly, New, Knuth and Synergy sold the securities to 100 investors, making $1.5 million in commissions.

SEC Claims Woodbridge Was A “Massive Ponzi Scheme”

Allegedly, Alan New coxed investors towards buying Woodbridge securities by claiming they were safe and conservative investments. However, Woodbridge was a “massive Ponzi scheme,” according to the SEC. Apparently, this scheme, which Robert H. Shapiro perpetrated, brought in an estimated $1.3 billion from investors before it failed in 2017. SEC says that by the time Woodbridge filed bankruptcy, investors received no more interest payments. Additionally, investors have yet to receive their principal investments.

Thirteen Clients File Disputes About New Alleging Sales Practice Violations

Notably, the Financial Industry Regulatory Authority (“FINRA”) Reports that Alan New has an extensive disciplinary history. Particularly, thirteen of New’s clients filed FINRA arbitrations or complaints against him. Four are pending; and nine have settled through payments to the clients. Here’s more on the clients claims suggesting New may have misrepresented investments and breached fiduciary duties to clients:

Investor Files Lawsuit Claiming New Failed To Disclose Woodbridge Mortgage Investment Fund Risks

 
An investor brought civil matter #:02D01-1804-PL-000120 in an Indiana State Court on February 28, 2019. Allegedly, Alan New did not disclose important information about Woodbridge Funds when he sold the securities in April 2017. Apparently, the client would not have purchased the Woodbridge investments had New told the client about the risks. Eventually, NYLife Securities paid the client $37,500 to settle the matter on February 28, 2019.
Investor Files Arbitration Claim Alleging Alan New Misrepresented Woodbridge Investments As Safe
Evidently, NYLife Securities LLC clients brought FINRA #18-02454 on September 19, 2018 concerning Alan New’s sales practices. According to the clients, New sold “unregistered and non-exempt investments” in Woodbridge securities.  Also, New supposedly told the clients that the investments were low-risk, safe and secure. Later, on May 7, 2019, NYLife Securities opted to settle the client’s claim by paying $92,937.38 in damages.

Experienced losses by investing with securities broker Alan New? If so, please contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.