Current Investigations

Alan New Allegedly Invests Numerous Customers In The Fraudulent Woodbridge Mortgage Investment Fund

By March 11, 2019 No Comments

Alan New was an Indiana based securities broker. He worked in the securities industry for sixteen years. During his career, he was registered with three different securities firms.

His registrations include; Robert W. Baird & Co. (1999-2002), Northwestern Mutual Investment Services (1999-2004), and NYLIFE Securities (2004-2016). He is no longer working as a registered securities broker in any fashion.

Alan New’s publicly available FINRA BrokerCheck report shows that he is the subject of numerous pending complaints from customers due to his alleged involvement in the Woodbridge Mortgage Investment Fund.

This particular fund was an unregistered security being sold by unregistered brokers. It had been described by the Securities and Exchange Commission as a massive Ponzi scheme. It had acquired over $1.2 billion dollars from approximately 8,400 investors.

Woodbridge employees were selling promissory notes to investors, fraudulently claiming that they were backed by mortgages. The investors were promised dividends of 5 to 8 percent annual interest to be paid monthly. Since the notes were not actually backed by mortgages, and the company had no actual source of income, the company paid its investor dividends through money coming in from new investors. This continued until everything collapsed and Woodbridge filed for bankruptcy.

Many registered securities brokers, such as Alan New, allegedly participated in purchasing these fraudulent promissory notes from unregistered Woodbridge Brokers for their customers.

Alan New is the subject of thirteen pending complaints from customers alleging that he invested them in the fraudulent Woodbridge Mortgage Investment Fund while failing to disclose the true nature of the security or the risks associated with it. The customers are seeking a grand total of approximately $3.7 million in damages due to Alan New’s alleged actions.

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Alan New, or the Woodbridge Mortgage Investment Fund, please contact Oakes & Fosher for a free and private consultation.