The Financial Industry Regulatory Authority (“FINRA”) announced that it issued Independent Financial Group (“IFG”) broker Jeffrey Schwebach (CRD#: 1606537, Dell Rapids, SD) an 8 month suspension for selling away (engaging in securities transactions outside the scope of the broker’s employment). Notably, Schwebach submitted a Letter of Acceptance, Waiver, and Consent #: 2018058910001 on May 24, 2019, which FINRA accepted June 26, 2019. Notably, Schwebach violated FINRA rules because he sold Woodbridge promissory notes without IFG’s permission.

Jeffrey Schwebach Solicits Woodbridge Group of Companies LLC Promissory Notes Without Permission

FINRA says that Jeffrey Schwebach broke FINRA rules by selling away. Particularly, FINRA Rule 3280 rule requires brokers to give notice to their brokerage firm, and get the firm’s approval, before selling away. This Rule is relevant here because IFG did not offer Woodbridge promissory notes. Supposedly, Schwebach sold 18 investors a total of $895,000 in promissory notes. Because of this, Schwebach made nearly $20,000 in commissions.

Woodbridge Appears To Be A Massive Ponzi Scheme

Allegedly, Woodbridge was a massive $1.3 billion Ponzi scheme which its owner, Robert H. Shapiro, orchestrated, according to regulators. Apparently, the scheme largely involved solicitation of investors for a purported conservative investment. Woodbridge eventually became financially insolvent and filed for Chapter 11 bankruptcy in December 2017. Later, SEC obtained a final judgment against Woodbridge and Shapiro requiring the company and Shapiro to pay a civil fine and disgorge ill-gotten gains.

FINRA Indicates Jeffrey Schwebach Was Dishonest With IFG About Woodbridge Transactions

Notably, FINRA says Jeffrey Schwebach misrepresented his activities with Woodbridge as an outside business activity involving first position mortgages. Not only that, but Schwebach also made false attestations on IFG’s compliance questionnaires. Supposedly, Schwebach claimed that he did not sell away or offer investments that IFG did not approve. Needless to say, IFG disassociated with Schwebach because of his improper activities and violation of IFG policy.

Lars Soreide Highest Ethical Standard Award 2018

Lars Soreide Highest Ethical Standard Award 2018

Did you suffer losses by investing with Jeffrey Schwebach? If so, 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.