More sanctions for unlicensed representatives who sold Woodbridge securities in Colorado
DENVER — Colorado Securities Commissioner Gerald Rome has issued another series of cease and desist orders to unlicensed sales representatives for their part in the alleged Ponzi scheme perpetrated by the Woodbridge Group of Companies. The order for Timothy C. McGuire was signed in February, orders for Ronald E. Caskey, Erik K. Little and David Allen Bjorklund were signed in March, and orders for Jerald N. Kagarise and James Quinn Campbell were signed today. This brings the Division of Securities’, part of the Department of Regulatory Agencies (DORA), actions against Woodbridge solicitors and salesmen to seven. The licenses of Laurent Carrier and Carrier Financial Services were withdrawn per an agreement with the Division in March.
In stipulations for the orders against the Respondents, the Division alleges that Woodbridge hired all the representatives to solicit and sell the unregistered and non-exempt securities, despite the fact that all were also unlicensed with the Commissioner.
The sales representatives, working on commission, utilized a method whereby investors were issued promissory notes in exchange for investments that were to go toward backing hard money loans secured by commercial property, called “First Position Commercial Mortgages.” Investors were guaranteed fund payments even in the instance of a hard money loan default.
“As the Securities and Exchange Commission’s securities fraud case against the Woodbridge Companies is on-going, we will continue to take action against those sales representatives soliciting and selling these unregistered notes in Colorado,” commented Rome. “The licensing requirement for financial professionals is an important protection for investors, and the failure to hold the proper licensure will result in sanctions.”
As a result of the signed orders, all Respondents agree to immediately cease and desist all violations of the Colorado Securities Act, and acknowledge that any further violations will result in further, more severe disciplinary action.