Finra bars another broker who sold Woodbridge Ponzi

The broker, Dennis Ferwerda, failed to cooperate in Finra's investigation

Oct 31, 2018 @ 4:09 pm

By Bruce Kelly

Finra has barred another broker who did not cooperate with an investigation into a real estate Ponzi scheme.

The Financial Industry Regulatory Authority Inc. on Tuesday barred Dennis Ferwerda for failing to provide documents and information the regulator requested regarding his sales of notes related to the Woodbridge Group of Companies.

Last year, the SEC charged the Woodbridge Group with running a $1.2 billion Ponzi scheme that targeted 8,400 investors.

Mr. Ferwerda started in the brokerage industry in 1977 and was registered with Signator Investors Inc. when he was fired this March for "involvement in the sale of unapproved outside investments in violation of firm policy," according to his BrokerCheck report. He agreed to the Finra order without admitting to or denying its findings.

In September, Finra barred two former H.D. Vest brokers who also sold promissory notes of Woodbridge, a group of unregistered investment companies.

Finra was also looking for information and documents from Mr. Ferwerda related to investments in 1 Global Capital, according to its order. In July, the Securities and Exchange Commission and the U.S. Attorney's office said they were investigating 1 Global Capital, an alleged $283 million loan fraud that was sold, at least in part, through a network of unregistered brokers and financial advisers.

Finra barred Mr. Ferwerda for failing to provide information it requested as part of its investigation, said his attorney, Lori Patterson.

"He determined he didn't want to be registered" with Finra, said Ms. Patterson. "I guess he doesn't care to sell securities anymore."

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

The secret to working with next gen clients?

Alan Moore of XY Planning says working with millennials isn't as difficult as some advisers make it sound. Here are three strategies for success.

Video Spotlight

We started as a boutique firm with huge ambitions. Schwab was a perfect fit.

Sponsored by Schwab Advisor Services

Recommended Video

Keys to a successful deal

Latest news & opinion

10 millennials making their mark in Washington — and beyond

These next-generation leaders are raising their voices and gaining influence over financial advice regulation and legislation.

Warburg Pincus among private equity managers interested in acquiring Kestra Financial

Sources say Kestra is being valued at between $600 million and $800 million, about eight to 10 times EBITDA.

10 highest paid professions in America today

These are the top-paying jobs in the U.S., according to Glassdoor.

Former Merrill Lynch star broker Thomas Buck sentenced to 40 months in prison

He pleaded guilty to securities fraud in 2017; charged clients excessive commissions.

Rules for claiming Social Security at 70

Some individuals' benefits will begin automatically; others have to take action.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print