SEC charges unlicensed Tennessee ‘broker’ for involvement with Ponzi scheme
The headquarters building of the U.S. Securities and Exchange Commission (SEC) in Washington, D.C., on May 10, 2010. Photographer: Joshua Roberts/Bloomberg
Henry J. Wieniewitz, III charged with selling securities of the Woodbridge Group.
The Securities and Exchange Commission has charged Henry J. “Trae” Wieniewitz, III and his Knoxville, Tenn. Wieniewitz Financial, for unlawfully offering and selling securities of the Woodbridge Group of Companies and 1 Global Capital.
(More: Finra suspends broker over Woodbridge-related sales)
The SEC previously charged Woodbridge, its owner and others with operating a $1.2 billion Ponzi scheme, and charged 1 Global and its owner with operating a fraudulent scheme to misappropriate millions of dollars from investors.
According to the SEC’s complaint, Mr. Wieniewitz and his firm illegally offered and sold Woodbridge and 1 Global securities to more than 630 retail investors from at least February 2016 to July 2018. The SEC alleges that throughout this period, neither Mr. Wieniewitz nor his company were registered as broker-dealers or were associated with a registered broker-dealer.
The agency said Mr. Wieniewitz and his firm raised more than $11.4 million and earned approximately $500,000 in commissions from unlawful sales of Woodbridge securities, and raised more than $53 million and obtained approximately $3 million in commissions from unlawful sales of 1 Global securities.
(More: SEC bars four ‘advisers’ for selling unregistered Woodbridge securities)
Mr. Wieniewitz and Wieniewitz Financial settled the SEC’s charges without admitting or denying the allegations, and agreed to be subject to injunctions, with the court to determine the amounts of disgorgement, interest and penalties at a later date.
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