If you were an investor with Peter Holler and invested in Woodbridge notes, please call 1-866-817-0201 about options to recover losses.
We believe Holler and his employer have the bulk of responsibility for these losses. During the relevant period when Holler sold Woodbridge, which coincides with his time working for Securities Services Network (SSN), Holler solicited investors to purchase promissory notes in Woodbridge Mortgage Investment Funds, a purported real-estate investment fund. Ultimately, Holler sold approximately $1.39 million in Woodbridge notes to 19 individuals, nine of whom were SSN customers. He received $49,790 in commission in connection with these transactions.
Woodbridge has been identified as a $1.2 billion Ponzi scheme by the Securities and Exchange Commission (SEC ). The allegations are that Woodbridge gave notes to investors for funds to be used as hard money loans to be used in the development of real property. Instead the funds were co-mingled by Woodbridge and used to pay earlier investors. Woodbridge became insolvent shortly after the SEC brought its action.
Recovery from the Woodbridge bankruptcy may be difficult. Woodbridge and its subsidiaries are in bankruptcy proceedings in federal court in Delaware. The Woodbridge notes were largely unsecured despite assertions to the contrary by those soliciting the notes. As a general rule, bankruptcy are where unsolicited claims are extinguished. Holler and SSN had a duty to know these facts prior to investing an investors and disclosing to the investors this incredibly high risk of loss.
These Woodbridge investments were not properly reported to his employer and his employer either turned a blind eye or failed to do the requisite supervision to monitor against such outside business activity. As a result, the investments were sold though they were not suitable to be sold to any investor. This creates potential liability on the part of both Holler and SSN.
The regulator FINRA brought an action against Holler for his sale of Woodbridge. This regulatory action echos the concern that the Woodbridge investments and their sale were not appropriately vetted.
FINRA rules state, “prior to participating in a private securities transaction, [a broker] shall provide written notice to the member with which he is associated describing in detail the proposed transaction and the person’s proposed role therein and stating whether he has received or may receive selling compensation in connection with the transaction.” FINRA Rule 3280(e) defines a private securities transaction as any securities transaction outside the regular course or scope of an associated person’s employment with a member. FIN RA Rule 20 I 0 requires associated persons, in the conduct or their business, to observe high standards of commercial honor and just and equitable principles of trade.
The record of Holler indicates that he and his former employer, Securities Services Network, currently facing two investor suits over the sale of Woodbridge notes. Both suits suits were filed subsequent to the bankruptcy of Woodbridge in December 2017.
Securities Services Network previously terminated Holler in August 2017 for the sale of Woodbridge notes. BrokerCheck identifies that Holler was terminated because the Woodbridge sales were unapproved by the firm. Despite this, Securities Services Network
We represent a number of investors across the country in obtaining recovery of Woodbridge losses. Please call for a free consultation.