FINRA Bars NYLife Stockbroker In Woodbridge Investigation
Alan Harold New of Fort Wayne Indiana a stockbroker formerly registered with NYLife Securities LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that New neglected to provide information and documentation to the regulator during an investigation into allegations of New’s sale of Woodbridge Group of Companies LLC promissory notes. Letter of Acceptance Waiver and Consent No. 2018057240801 (Apr. 7, 2020).
According to the AWC, on February 4, 2020, New was instructed by FINRA personnel to hand over documentation and information that related to FINRA’s investigation into New’s promissory notes sales. The AWC stated that New was provided until February 18, 2020 to cooperate with its request. New’s counsel relayed to FINRA personnel on February 13, 2020 that there would be nothing provided by New in response. FINRA determined that New’s conduct was violative of FINRA Rules 2010 and 8210.
New has been named in a Securities and Exchange Commission (SEC) Complaint alleging that between September of 2013 and August of 2017, he and co-defendant David N. Knuth used a company they co-owned called Synergy Investment Services to act as unregistered brokers for Woodbridge Group of Companies as well as Woodbridge’s affiliates. Securities and Exchange Commission v. Alan H. New et al. Case No. 1:18-cv-03975 (Dec. 17, 2018).
The Complaint alleged that $15,000,000.00 had been accumulated from one hundred investors which allowed New and others to collectively accumulate $1,500,000.00 in commissions. SEC alleged that Woodbridge had been touted to customers as secure and safe. Woodbridge was reportedly a Ponzi scheme that collapsed in 2017 after accumulating in excess of $1,200,000,000.00 from investors. SEC alleged that Woodbridge securities were neither registered nor exempt from registration. The Complaint alleges that New’s conduct was violative of Securities Exchange Act of 1934 Section 15(a)(1) and Securities Act of 1933 Section 5(a) and 5(c).
FINRA Public Disclosure reveals that New has been identified in fifteen customer initiated investment related disputes containing allegations of his misconduct while employed by NYLife Securities. New is the subject of a customer initiated investment related civil action brought in the Indiana Superior Court which settled for $37,500.00 in damages based upon allegations of New’s failure to disclose risks and other facts about Woodbridge Mortgage Investment Fund. Civil Action No. 02D01-1804-PL-000120 (Feb. 28, 2019). Another customer filed an investment related arbitration claim involving New’s conduct in which the customer requested $110,000.00 in damages supported by accusations that the customer had been misled regarding the risks of Woodbridge promissory notes. FINRA Arbitration No. 19-03554 (Dec. 31, 2019).
On January 30, 2020, another customer initiated investment related civil action involving New’s conduct was settled for $100,000.00 in damages based upon allegations that misrepresentations had been made to the customer by New concerning Woodbridge promissory notes and an investment in 1 Global Capital LLC. Civil Action No. 02D03-1812-PL-000447.