“The broker-dealer and securities registration provisions are vital protections for retail investors,” said Eric I. Bustillo, director of the SEC’s Miami regional office. “Our actions allege the defendants, while not registered as broker-dealers, pocketed millions of dollars in unlawful commissions from their widespread sales of unregistered Woodbridge securities.”
Per the SEC’s complaint, the defendants boasted Woodbridge as a “safe and secure” investment. The Kornfelds allegedly solicited investors at seminars and a “conservative retirement and income planning class” they taught at a Florida university.
Furthermore, the SEC alleged that Klager pitched Woodbridge investments in newspaper ads. Meanwhile, Costa recommended the investments during a radio program he hosted. Finally, Robbins used radio, television and internet marketing to sell the securities.
The Inevitable Bankruptcy
When Woodbridge finally filed for bankruptcy, the investors stopped receiving monthly interest payments. Not only that, they did not receive a return of their investment principal.
