Ex-Forest Securities Broker Is Barred By FINRA
Please contact our broker fraud lawyers at Sheperd Smith Edwards and Kantas (SSEK Law Firm) if former Forest Securities stockbroker, Jeffery Scott Nimmow, sold you Woodbridge promissory notes.
Nimmow was recently barred by the Financial Industry Regulatory Authority (FINRA) after he sold over $3M in promissory notes from the Woodbridge Group of Companies to 18 investors. Woodbridge is accused of operating a $1.2B Ponzi scam that defrauded 8400 investors. Many of whom were retail investors that included seniors and retirees who lost their retirement money in the scam.
Over the past several years, SSEK Law Firm has been speaking with Woodbridge investors to help them explore their legal options. We can help you determine whether you have grounds for investor fraud claims against the brokerage firm and its registered representative that sold you these promissory notes.
Jeffery Nimmow Was Paid Nearly $178K from Woodbridge Sales
According to FINRA, Nimmow earned nearly $178K in commission from selling at least $3.365M in Woodbridge’s First Position Commerical Mortgages (FPCM) to customers while he was a Forest Securities broker. Two of these 18 investors were Forest Securities customers.
The self-regulatory organization (SRO) contends that Nimmow failed to disclose these transactions to or get the approval of the broker-dealer, which violates FINRA rules. Not only that but the former Forest Securities broker lacked the registration required to sell the Woodbury promissory notes and was only authorized to sell certain types of securities.
The firm fired Nimmow in 2018 related to his involvement in the Woodbridge promissory note transactions. His BrokerCheck record shows two pending customer disputes related to these transactions in which $150K and $450K are being sought, respectively.
Both claimants note that Nimmow, who sold them the Woodbridge FPCM’s through his Legacy Financial Network & Retirement Services was given approval by First Securities to engage in outside business activities.
Nimmow was a Forest Securities broker for three years. He worked 21 years in the industry. Previous to that, he had been a registered representative for five other broker-dealers, including Questar Capital, Traderight Securities, US Allianz Securities, Signator Investors and John Hancock Mutual Life Insurance.
He accepted FINRA’s bar but without agreeing to or denying the findings. Last month, FINRA suspended Forest Securities’ status as a registered brokerage firm.
Woodbridge Ponzi Scam Defrauded Thousands
Thousands of investors were defrauded by Woodbridge and its 281 related companies. They were promised annual returns of 5-8% with payments supposedly to come from the interest related to loans made to third-party borrowers. Not enough money was made this way and newer investors’ money ended up being used as “payments” to earlier investors.
In 2018, Woodbridge and its companies settled the US Securities and Exchange Commission (SEC’s) civil case over the Ponzi scam for $1B. Woodbridge’s former CEO, Robert Shapiro, settled the regulator’s civil fraud charges against him. This involved a $100K penalty, $18.5M of disgorgement and $2.1M of prejudgement interest.
Last year, Shapiro was sentenced to 25 years in prison after pleading guilty to related criminal charges.
Woodbridge Ponzi Scam Attorneys
Our Woodbridge investor fraud lawyers work with investors throughout the United States. Over the last 30 years, SSEK Law Firm has helped thousands of investors to recover many millions of dollars from losses they suffered due to the inadequate supervision or negligence of broker-dealers and their registered representatives, as well as the fraudulent actions of brokers and investment advisors.
Contact SSEK Law Firm today if ex-broker, Jeffery Scott Nimmow or any other financial representative sold you Woodbridge promissory notes.