The Investor’s Watchdog

The Investor's Watchdog

Jeffrey Schwebach Agrees to FINRA Sanctions to Resolve Allegations of Soliciting Woodbridge Promissory Notes

Wednesday, July 10, 2019

The Financial Industry Regulatory Authority (FINRA) Department of Enforcement recently approved a Letter of Acceptance, Waiver and Consent (AWC) submitted by former registered representative Jeffrey Schwebach for allegedly violating FINRA Rules by engaging in private securities transactions in Woodbridge Group of Companies without obtaining prior approval from his member firm.

Schwebach entered the securities industry in 1987 with Pruco Securities Corporation in Newark, New Jersey until 2003. He was associated with three other FINRA member firms before his most recent member firm, Independent Financial Group, LLC, in Dell Rapids, South Dakota from November 2010 to June 2018. According to his FINRA BrokerCheck report, Schwebach was discharged for failing to accurately disclose the nature of his outside business activities and because he failed to disclose a customer complaint.

FINRA alleges that Schwebach solicited investors to purchase promissory notes relating to the Woodbridge Group of Companies LLC, a purported real estate investment firm that has been the subject to dozens of FINRA complaints. Schwebach sold $895,000 in these notes to 13 IFG customers, as well as 5 other individuals, and received nearly $20,000 in commissions for these transactions. FINRA asserts that not only did Schwebach fail to obtain prior approval to engage in these transactions from his member firm, but he also falsely attested on his 2016 and 2017 compliance questionnaires that he had not engaged in securities activities that were not approved by the firm.

Based on the foregoing, Schwebach violated FINRA Rules 3280 and 2010. Without admitting or denying the allegations made against him, he consented to an eight-month suspension from associating with any FINRA member firm and to disgorge his ill-gotten commissions totaling $19,534, plus interest.

ChapmanAlbin has helped Woodbridge investors recover hundreds of thousands of dollars. If a broker was not properly supervised while registered at a brokerage firm, the firm can be held liable for the broker’s misconduct. If you invested and lost money in Woodbridge Group of Companies’ Ponzi scheme, you may be able to recover from the broker or his/her brokerage firm. Call us (1-877-410-8172) today for a free, no obligation consultation.

Author: Jason T. Albin

Jason Albin is an Attorney and Partner at ChapmanAlbin, the investor rights law firm. He has represented hundreds of investors who have lost money due to broker misconduct, unsuitable investment advice and fraud.​ Jason also represents individuals in “whistleblower” suits filed against unscrupulous companies that try to defraud the US federal and state governments.

Leave a Reply

Your email address will not be published. Required fields are marked *