FINRA Bans Broker Who Sold $3.5M in Woodbridge Ponzi

In order to strengthen the message that such schemes will not be tolerated, and will be punished tot he fullest extent of the law, the financial industry watchdog agency, FINRA, has begun to look at the role of individual brokers in shoring up the Woodbridge scam. After all, Woodbridge’s success, during which it swelled to a value of over $1.2 billion at its peak, relied heavily upon an extensive network of brokers and investment professionals who sold Woodbridge promissory notes to retail investors.

Broker-dealers May Be Responsible for Selling Away of Woodbridge

A recent judgment in FINRA arbitration for nearly a quarter of a million dollars against a broker who sold Woodbridge notes to investors has struck fear in the hearts of many firms who weren’t paying attention to their brokers over the past few years. If one firm can be held responsible for the failings of a broker, they all potentially can. And that’s a billion-dollar problem.