The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Jerry Raines. According to his publicly available FINRA BrokerCheck report, Jerry Raines has been the subject of numerous customer complaints all in connection with unregistered securities associated with the Woodbridge Group of Companies.
Jerry Raines was a Texas based securities broker. He worked in the securities industry for eleven years. During his career, he was registered with four different securities firms.
His Registrations
- Woodmen Financial Services (2004-2010)
- Woodmen Financial Services (2011-2012)
- Signal Securities (2013-2014)
- HD Vest Investment Services (2014-2017)
The Allegations
Numerous customers filed claims against Jerry Raines’ former securities firm due to him allegedly investing them in privately traded securities associated with the Woodbridge Group of Companies. These securities were known as the Woodbridge Mortgage Investment Funds.
The Woodbridge Group of Companies housed numerous unregistered securities that had been described by the Securities and Exchange Commission as a massive Ponzi scheme. It spent years operating in plain sight acquiring over $1.2 billion dollars from approximately 8,400 investors–most of which were elderly.
Securities brokers like Jerry Raines sold promissory notes to these investors while fraudulently claiming that they were backed by mortgages. The investors were promised dividends of 5 to 8 percent annual interest to be paid monthly. However, the Woodbridge funds did very little in regards to actually providing mortgages. Thus, these promissory notes were not actually backed by any thing.
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 later rounds of investors. This continued until everything collapsed and the Woodbridge Group of Companies filed for bankruptcy.
Many of the complaints filed due to Jerry Raines’ alleged involvement in Woodbridge have been settled, however, some of them are still currently pending. These customers all believe that this investment was incredibly unsuitable. Jerry Raines, allegedly, either failed to conduct the necessary due diligence required to discern that information, or fraudulently invested his customers in a security he was well aware was unsuitable. Regardless of his intent, investors were very seriously harmed financially.
Oakes & Fosher Can Help
Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.
Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Jerry Raines or the Woodbridge Group of Companies, please contact Oakes & Fosher for a free and private consultation.
