Previously registered broker John Jaramillo allegedly sold $250,000 of promissory notes connected to the Woodbridge Group of Companies, according to reports from FINRA under review by investor rights attorney Alan Rosca.
The Woodbridge Group of Companies was a $1.2 billion Ponzi scheme run by CEO Robert H. Shapiro, FINRA reports. Jaramillo was employed with Western International Securities during this time, and he allegedly failed to obtain approval from the firm before selling Woodbridge promissory notes to three investors.
Investors right attorney Alan Rosca, of the Rosca Scarlato LLC law firm, is investigating activity related to John Jamarillo’s alleged participation in Woodbridge Ponzi scheme. Investors who believe they may have lost money in activity related to John Jaramillo’s alleged Woodbridge Ponzi scheme promissory notes recommendations are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their recovery options.
John Rosas Jaramillo Suspended and Fined by FINRA for Alleged Participation in Unapproved Private Securities Transactions
Between April and September 2016, former broker John Jaramillo allegedly solicited three investors to purchase promissory notes related to the Woodbridge Group of Companies according to the FINRA Letter of Acceptance, Waiver and Consent(AWC).
Jaramillo allegedly sold $250,000 in Woodbridge promissory notes to three investors, two of whom were customers of his former employer, Western International Securities. Jaramillo received $8,770.83 in commission in connection with these private transactions, the AWC reports.
According to the AWC, John Jaramillo never received approval from Western International Securities to sell Woodbridge promissory notes. Reportedly, Western International Securities prohibits registered representatives from engaging in private securities transactions without approval from the firm.
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During a 2016 Firm questionnaire, Jaramillo denied engaging in any private securities transactions outside the regular scope of his employment with the firm, as reported in the AWC. As a result, John Jaramillo was suspended from association with any FINRA member firm in all capacities for five months, and he received a civil and administrative penalty to the tune of $5,000, and disgorgement of commissions received to the tune of $3,770.83. The suspension will be effective until February 7, 2021.
Investors who are concerned they invested in Ponzi schemes such as Woodbridge are encouraged to contact attorney Alan Rosca and his colleagues for a free case evaluation and discussion of their recovery options. Call 888-998-0530, email at arosca@rscounsel.law, or through the contact form on this webpage.
What is the Woodbridge Ponzi Scheme?
Woodbridge Group of Companies was a $1.2 billion Ponzi scheme run by CEO Robert H. Shapiro, and Directors of Investments Ivan Acevedo and Dane R. Roseman, from July 2012 until December 2017.
Woodbridge brokers reportedly defrauded approximately 8,400 investors by allegedly promising high returns on real estate investments. Many of them were seniors, who used their retirement savings to fund the scheme.
In order to keep the scheme running smoothly, Woodbridge used money from new investors to pay existing investors. Woodbridge Group of Companies filed for bankruptcy in December 2017 and they were sued by the SEC for alleged investment fraud and selling unregistered securities to raise funds to repay earlier investors.
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Broker John Jaramillo Has Been Discharged from Western International Securities
John Rosas Jaramillo was employed with Western International Securities located in Westlake Village, California, from June 2008 until May 2020. Jaramillo was discharged from Western International Securities in May 2020 for allegedly selling a non-approved product, according to his FINRA Brokercheck page.
Jaramillo was previously employed with Financial West Group, located in Reno, Nevada, from September 2000 until June 2008. This firm was expelled by FINRA on February 13, 2020.
Jaramillo was also employed with PFS Investments, located in Duluth, Georgia, from January 1996 until August 2000.
Broker John Rosas Jaramillo has been registered with FINRA for 24 years and switch employers three times.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
Securities Lawyer Investigating Alleged Participation in Woodbridge Ponzi Scheme
Rosca Scarlato LLC law firm attorneys currently represent Woodbridge investors and have filed claims against a third-party financial institution that they contend assisted the scheme. The firm takes most cases of this matter on a contingency fee basis and advance the case costs. We only get paid for fees and costs out of money recovered for clients.
Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions. Attorney Alan Rosca is currently representing other Woodbridge investors and is seeking compensation for their losses.
Investors who believe they lost money as a result of broker John Jaramillo’s alleged unapproved private securities transactions in relation to Woodbridge Ponzi scheme may contact attorney Alan Rosca for a free, no obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
