Woodbridge Promissory Notes - Law Offices of Robert Wayne Pearce

Apr 13, 2020

Former Independent Financial Group Stockbroker Jeffrey Schwebach Suspended for Engaging in Private Transactions

Jeffrey Schwebach of Sioux Falls, South Dakota submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he has been suspended for allegedly engaging in unapproved private securities transactions in violation of FINRA Rules 3280 and 2010. From November 2010 to June 2018, Mr. Schwebach was registered with Independent Financial Group (IFG) as a General Securities Representative and Investment Company Products/Variable Contracts Representative. According to the FINRA findings, Jeffrey Schwebach sold $895,000 Woodbridge promissory notes to 18 investors, 13 of whom were his firm’s customers and received $19,534 in commissions. The findings also stated that Schwebach never sought approval from his firm to sell the promissory notes and instead disclosed Woodbridge as an outside business activity involving first position mortgages, not as private transactions. In addition to the FINRA findings, Schwebach allegedly falsely stated that he had not engaged in unapproved private securities transactions on annual compliance questionnaires.

Apr 8, 2020

Foresters Equity Services Stockbroker John Dale Ernst Suspended for Engaging in Private Transactions

John Dale Ernst of Milwaukee, Wisconsin submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for allegedly engaging in unapproved private transactions in violation of FINRA Rules 3280 and 2010. From January 4, 2011 through March 12, 2018, John Dale Ernst was registered with Foresters Equity Services as an Investment Company Products/Variable Contracts Representative. According to FINRA’s findings, John Dale Ernst engaged in unapproved private securities transactions totaling $509,000 in Woodbridge promissory notes to four investors, three of whom were customers of his firm. The findings stated that Ernst received $35,252 in commissions in connection with the transactions. In addition to those FINRA findings, Ernst allegedly stated on his annual compliance questionnaires for 2015, 2016, and 2017 that he had not sold promissory notes or participated in any private securities activities without approval from his firm.

Apr 1, 2020

Former American Portfolio Stockbroker Gary A. Forrest Suspended for Engaging in Private Transactions

Gary Arthur Forrest of Swartz Creek, Michigan submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he has been fined and suspended for allegedly engaging in unapproved private transactions in violation of FINRA Rules 3280 and 2010. In February 2007, Gary Arthur Forrest joined American Portfolio as a General Securities Representative where he remained until his termination on November 16, 2016. According to the FINRA findings, Forrest engaged in private securities transactions involving the sale of Woodbridge promissory notes totaling $826,986 to 15 investors, 13 of whom were his firm’s customers. The findings stated that Forrest sold the promissory notes, despite being denied approval from his firm upon request. In addition, Woodbridge later filed a voluntary Chapter 11 bankruptcy petition and subsequent judgment required Woodbridge and it former owner to disgorge their ill-gotten gains.