According to New Jersey’s Attorney General’s Office and Division of Consumer Affairs, JB Financial Resources and its owner Jeffrey Mitchell Isaacs must pay a $750K for allegedly selling NJ investors over $7M in unregistered securities connected to the $1.2B Woodbridge Ponzi Scam. More than 8,500 people are said to have been defrauded nationally in that scheme before its demise last year.
The state of New Jersey contends that JB Financial Resources and Isaacs sold about 88 unregistered securities on behalf of the Woodbridge Group of Companies. Isaac’s other entity, JMI Associates LLC, is also accused of promoting and selling unregistered investments, including first position commercial mortgage securities (FPCMs) tied to Woodbridge in NJ.
Marketing collateral touted the unregistered securities as a “unique lending opportunity.” Sale proceeds would reportedly be used by the Woodbridge Funds to issue commercial loans to commercial borrowers. Instead, the FPCMs sold to NJ investors were not collateralized right away. In certain instances, borrowers did not get the loans for weeks or months after investors bought them.