Erez Law is interested in speaking with investors who may have suffered losses due to investments with former HD Vest Investment Services financial advisor Jerry Raines (CRD# 4578689), who is alleged to recommend his client invest in Woodbridge Group of Companies. Raines was registered with HD Vest Investment Services in Kilgore, Texas from 2014 to 2017.
In September 2018, Raines was barred by FINRA after he consented to the sanction and to the entry of findings that he failed to provide documents and information requested by FINRA in connection with its review of Raines’s participation in sales of notes related to a group of unregistered investment companies.
The Woodbridge Group of Companies is a southern California luxury real estate developer that missed payments on notes sold to investors and filed chapter 11 bankruptcy in December 2017, along with 275 subsidiaries and affiliates, citing “unforeseen costs associated with ongoing litigation and regulatory compliance.” It is alleged that elderly and other investors invested millions of dollars into the Woodbridge Group of Companies investment programs. The investors were allegedly told that these were secure investments in real estate, which is not the case as evidenced by these bankruptcy proceedings.
The SEC is investigating whether 235 LLCs have violated the anti fraud, broker-dealer and securities registration provisions of the federal securities laws in connection with the Woodbridge Group of Companies receipt of more than $1 billion of investor funds from thousands of investors nationwide. The SEC is investigating the offer and sale of unregistered securities, the sale of securities by unregistered brokers and the commission of fraud in connection with the offer, purchase and sale of securities. Monetary claims against Woodbridge remain pending.
Raines has been the subject of 14 customer complaints in 2018 and 2019, according to his CRD report:
- January 2019. “Claimants alleged the representative misrepresented Woodbridge Companies and also alleged the product was not suitable.” The customer is seeking $500,000 in this pending customer complaint.
- January 2019. “Claimants alleged the representative misrepresented Woodbridge Companies and also alleged the product was not suitable.”
- April 2018. “Sold investment, Woodbridge Mortgage Fund, that was unauthorized by BD. Woodbridge filed bankruptcy alerting regulators and firms.” The customer is seeking $244,000 in this pending customer complaint.
- March 2018. “Claimants alleged the representative misrepresented Woodbridge Mortgage Investment Fund and failed to conduct reasonable due diligence on the unregistered security.” The customer sought $234,780.90 in damages and the case was settled for $76,597.
- March 2018. “Claimants alleged the representative misrepresented Woodbridge Companies and also alleged the product was not suitable.” The customer is seeking $500,000 in damages and the case is currently pending.
- March 2018. “Claimants alleged the representative misrepresented Woodbridge Mortgage Investment Fund and failed to conduct reasonable due diligence on the unregistered security.” The customer was seeking $349,764 in damages and the case was settled for $106,049.
- March 2018. “Raines sold Claimant Woodbridge Mortgage Investment Funds 1 & 2. Dates referenced include May 2013 and February 2014. Allegations include unsuitable recommendations and misrepresentation.” The customer is seeking $150,000 in damages and the case is currently pending.
- March 2018. “Jerry Raines sold claimant Woodbridge Pre-Settlement Funding, LLC in September 2012. Allegations include unsuitable recommendations and misrepresentation.” The customer is seeking $100,000 in damages and the case is currently pending.
- February 2018. “Claimant alleged the representative misrepresented Woodbridge Mortgage Investment Fund and failed to conduct reasonable due diligence on the unregistered security.” The customer was seeking $505,000 in damages and the case was settled for $161,762.
- February 2018. “Claimant alleged the representative misrepresented Woodbridge Mortgage Investment Fund and failed to conduct reasonable due diligence on the unregistered security.” The customer was seeking $1 million in damages and the case was settled for $395,187.
- February 2018. “Raines sold Claimant Woodbridge Mortgage Investment Funds 2 & 2. Dates referenced include April 2013 and April/May 2014. Allegations include unsuitable recommendations and misrepresentation.” The customer is seeking $450,000 in damages and the case is currently pending.
- February 2018. “Claimants alleged the representative misrepresented Woodbridge Mortgage Investment Fund and failed to conduct reasonable due diligence on the unregistered security.” The customer was seeking $623,099.14 in damages and the case was settled for $204,492.
- February 2018. “Claim states that Raines sold Claimant Woodbridge Mortgage Investment Fund 2, LLC. Woodbridge has filed bankruptcy. Dates referenced May 2014. Allegations include unsuitable recommendations and misrepresentation.” The customer is seeking $50,000 in damages and the case is currently pending.
- February 2018. “Claimants alleged the representative misrepresented Woodbridge Mortgage Investment Fund and failed to conduct reasonable due diligence on the unregistered security.” The customer was seeking $450,000 in damages and the case was settled for $155,913.
- February 2018. “Claimants alleged the representative agreed to join and participate in a civil conspiracy related to the Woodbridge investments and committed overt acts in furtherance of the conspiracy that substantially and successfully ‘propped up’ Woodbridge’s fraudulent scheme.”
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, HD Vest Investment Services may be liable for investment or other losses suffered by Raines’ customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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