The Florida Office of Financial Regulation has issued an Administrative Complaint against ten (10) unregistered firms and individuals who unlawfully offered Woodbridge’s First Position Commercial Mortgages as unregistered securities. In a separate civil complaint filed by the Securities and Exchange Commission, it is alleged that investors’ money went to pay commissions to sales agents, to pay interest to existing investors, and to pay the personal expenses of the company’s president. Woodbridge has since filed for bankruptcy protection making a full recovery on the notes unlikely. The named individuals and firms are Barry and Ferne Kornfeld and FEK Enterprises, Inc., d/b/a First Financial Tax Group; Lynnette Robbins and Knowles Systems, Inc.; Albert Klager and Atlantic Insurance & Financial Services, Inc.; Andrew Costa and Costa Financial Insurance, Inc.; and James Gilchrist.
The Florida OFR estimates that more than 800 Floridians may be Woodbridge investors. If you are one of them and want more information about your rights, contact Andre Perron at Barnes Walker, (941) 827-2228.