FREDRICK MARTIN RANDHAHN (FRED RANDHAHN) CRD#: 1338801 was suspended by the Financial Industry Regulatory Authority (FINRA) for nine months after he allegedly sold $625,000 in Woodbridge Group promissory notes to five investors without first seeking approval from his firm, Sigma Financial, fined $5,000, and ordered to pay disgorgement of $33,167.67.

According to the FINRA report, without admitting or denying FINRA’s findings, FRED RANDHAHN consented to the sanctions and to the entry of findings that he engaged in private securities transactions involving the sale of promissory notes without seeking prior approval from his member firm. FINRA’s findings stated that Randhahn solicited investors to purchase promissory notes relating a purported real-estate investment fund. Randhahn sold $625,000 in the promissory notes to investors, two of whom were also clients of his firm. Randhahn personally invested $125,000 in promissory notes and received $33,167.67 in commissions in connection with these transactions. Later the fund filed a voluntary Chapter 11 bankruptcy petition. The United States District Court for the Southern District of Florida issued final judgments against, among others, the fund and its former owner. Those judgments required the fund and its former owner to, among other things, disgorge their ill-gotten gains and also required the former owner to pay a civil penalty.

FINRA’s findings also stated that FRED RANDHAHN failed to make any disclosure of the fund to the firm in response to two firm questionnaires. On his questionnaires, Randhahn denied participating in any private securities transactions or selling any non-securities investment products. 

FRED RANDHAHN agreed to the suspension and to pay a $5,000 fine. He also agreed to disgorgement of nearly $33,200 in commissions he received from the transactions, plus interest. FINRA stated that the alleged solicitation of the Woodbridge Group by Randhahn took place between June of 2016 and September of 2017.  Woodbridge, according to the SEC, operated as a massive Ponzi scheme from July of 2012 to December of 2017.  The former CEO, Robert Shapiro, was sentenced to 25 years in prison for the $1.2 billion fraud with over 8,400 investors.

According to FINRA’s BrokerCheck, FRED RANDHAHN has 3 Disclosures on his CRD report.  One of the Disclosures is an “Employment Separation After Allegations” from Sigma Financial Corporation, alleging, “Firm has reason to believe the representative sold unapproved investments to customers.” Randhahn was discharged from Sigma Financial Corporation in August of 2018.

FRED RANDHAHN has 32 years in the securities industry and was listed with 7 firms, the most recent listed below:

01/13/2012 – 08/24/2018  SIGMA FINANCIAL CORPORATION – Ogden, UT

10/05/2009 – 01/24/2012  AMERIPRISE FINANCIAL SERVICES INC – MIDVALE, UT

03/13/2009 – 10/05/2009  AMERIPIRSE ADVISOR SERVICES INC – MIDVALE, UT

02/22/1996 – 03/16/2009  MERRILL LYNCH, PIERCE, FENNER & SMILTH INC. –

OGDEN, UT

If you’ve experienced losses due to the recommendations of broker, FRED RANDHAHN, formerly of Sigma Financial Corp. of Ogden, Utah, or any other broker particularly in the sale of Woodbridge Group promissory notes, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at:  888-760-6552.

Soreide Law Group works on a contingency fee and represents our clients nationwide before FINRA.