oreide Law Group has filed FINRA arbitrations on behalf of clients who were sold investments by their brokers in the various Shopoff products listed below. These products were sold by several broker/dealers, one in particular, National Securities Corporation. If your broker recommended any of these products listed below and you have experienced losses, contact our lawyers at no cost at: 888-760-6552.
WILLIAM ANTHONY SHOPOFF (WILLIAM A SHOPOFF, BILL SHOPOFF) CRD#: 1273471, president and CEO of the Irvine, California-based, SHOPOFF SECURITIES, INC., is facing a disciplinary action by the Financial Industry Regulatory Authority (FINRA) following allegations of fraudulently selling approximately $12.57 million of promissory notes to 29 investors.
According to the FINRA report, WILLIAM A SHOPOFF was named a respondent in a FINRA complaint alleging his member firm, through him as the president and chief executive officer (CEO) and the firm’s senior vice president for investor relations, Shopoff’s brother, Stephen R. Shopoff, fraudulently sold promissory note investments to investors.
The FINRA complaint alleges that WILLIAM A SHOPOFF formed a fund with the stated purpose of raising funds for his private real estate firm, Shopoff Realty. Allegedly, Shopoff and the Vice President each distributed or directed others at the firm to distribute the Private Placement Memorandum (the PPM), the fund Subscription Agreement template, and a document entitled Loan Guaranty Agreement, to fund investors, each of whom Shopoff approved and allegedly contained certain material misrepresentations and omissions of facts. FINRA alleges that Shopoff and the Vice President misrepresented this material information in the PPM, subscription agreement and guaranty, failed to disclose the material information omitted to the fund investors, and verbally misrepresented material facts by stating that the fund investment proceeds would be used for working capital needs or general corporate purposes of Shopoff Realty or its affiliates.
FINRA’s complaint also alleges that WILLIAM A SHOPOFF, the firm, and the Vice President, offered and sold promissory note investments in a corporation that Shopoff authorized. However, Shopoff, the firm, and the Vice President allegedly failed to disclose that some investment proceeds would actually be transferred to Shopoff and his personal trust to pay his and his wife’s personal expenses, and that approximately $165,000 were allegedly used for those personal expenses. Allegedly, Shopoff, the firm, and the Vice President also failed to disclose that some investment proceeds would be used to repay previous Notes investors. Although Shopoff and his wife personally guaranteed the investments, Shopoff, the firm and the Vice President, failed to disclose to the investors that Shopoff and his wife’s assets were largely illiquid.
According to the FINRA complaint, the firm, through WILLIAM A SHOPOFF, fraudulently sold two private placement offerings that were sponsored by his private real estate firm. The firm, through Shopoff, allegedly massively inflated his and his wife’s cash assets in a financial statement given to a third party due diligence provider.
According to the complaint, allegedly Shopoff Realty’s debt, went from $2.835 million to $22.6 million between 2006 and 2013.
If you have invested in any of the following investments, contact Soreide Law Group:
Shopoff Land Fund I LP
Shopoff Land Fund II, L.P.
Shopoff Land Fund III, L.P.
Shopoff Land Fund IV, L.P.
Shopoff Land Fund V, L.P.
Shopoff California Commercial Fund, L.P.
Shopoff Commercial Growth and Income Fund III, L.P.
SCGIF II – Skypointe, LLC
SCF – 4440 VKA, LLC
SCGIF II – Franklin, LLC
SCF – 2100 Q Street, LLC
SCGIF II – Des Plaines, LLC
Other Entities Included:
The Shopoff Group, L.P.
Shopoff Realty Investments, L.P.
Fund IV, L.P.
TSG Fund IV, L.P.
Shopoff Enterprises, Inc.
Shopoff Enterprises Notes.
WILLIAM A SHOPOFF, according to FINRA’s BrokerCheck, has 5 Disclosures on his CRD report. Of these 5 Disclosures, 3 are Customer Disputes. One Customer Dispute settled in December of 2018 for $4,750,000.00, following allegations that, “Former employee of Firm affiliate (Executive Vice President, Commercial Real Estate), and related investment entities, assert claims for breach of contract against individual and family trust, as guarantors, relating to two guaranties executed in 2012 and 2014. Specifically, plaintiff asserts claims for breach of guaranty, specific performance, and breach of the covenant of good faith and fair dealing, as well as a single conclusory (unsupported) claim for fraud based on alleged statements made at the time of the guaranties.”
There are two Customer Disputes pending, both filed in May of 2019, requesting $6,003,000.00 and $25,056,868.00.
Shopoff has been registered in the securities industry for 13 years and was listed with two firms, the following firm since May 29, 2007:
SHOPOFF SECURITIES, INC.
2 PARK PLAZA, SUITE 770
IRVINE, CA 92614
If you or a loved one have suffered financial losses in any of these funds due to the actions or recommendations of your broker/dealer, financial advisor, or WILLIAM A SHOPOFF of SHOPOFF SECURITIES, INC. of Irvine, California, contact Soreide Law Group and speak at no cost to an experienced securities lawyer regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group works on a contingency fee, no fee to you if no recovery, and represents our clients nationwide before FINRA.