Frank Roland Dietrich Barred by FINRA
Frank Dietrich, broker at Quest Capital Strategies, was barred by FINRA for selling fake notes in a real estate Ponzi scheme. Woodbridge Group filed for bankruptcy last year. Frank Dietrich allegedly sold investors $10.8 million worth of promissory notes related to real estate holdings. Frank Roland Dietrich used his 23 years of experience at 5 firms to earn the trust of his clients to sell them bad investments according to allegations in filings against him.
The SEC charged Woodbridge Group of Companies in 2017 with running a $1.2 billion Ponzi scheme involving over 8,000 investors.
Several of the salesmen who sold the alleged fake real estate notes were former brokers or were previously barred from the industry. These salesmen pitched the notes as “alternative investments” which supposedly do not track the stock market as a way to ensure frightened investors that they are safe.
According to FINRA, Dietrich sold the notes to over 50 investors 30 of whom were customers of Woodbridge Group. Dietrich received $261,000 in commissions from the sale of the notes.
Frank Roland Dietrich allegedly engaged in a practice called “Selling Away” which is when a broker sells securities without discl
Lars Soreide Highest Ethical Standard Award 2018
osing them to his firm. The brokerage firm is often liable for such events as shown in previous cases.
Quest Capital Strategies allowed Frank Dietrich to resign in March for selling securities away from the firm and engaging in unapproved product. Brokercheck shows that he has 8 pending disclosures against him CRD# 2506091.
As for the Woodbridge Group: CEO Robert Shapiro had to pay $120 million to settle with the SEC about the allegations that his notes defrauded investors and drove his company into bankruptcy. He did this without admitting or denying the allegations.
If you or a loved one were a victim of this Ponzi scheme or other bad investments please contact Soreide Law Group at 888-760-6552 for a free consultation