Shopoff Securities Investigated by FINRA over Promissory Note Sales

Shopoff Securities investigated by FINRA; Promissory Notes sold from 2010 to 2017 under review.

On January 10, 2019 FINRA opened a regulatory investigation against Shopoff Securities of Irvine, CA and its principals, William Shopoff and Stephen Shopoff concerning the sale of promissory notes.  FINRA charged that Shopoff Securities sold over $12 million of personally guaranteed promissory notes to 29 investors.

Among the claims made are that the funds raised by Shopoff Securities were used to pay returns to prior investors, and that the transactions were unsuitable for the purchasers.  Using funds raised to repay prior investors could be indicative of a Ponzi scheme.  FINRA Rule 2111 requires that all recommendations to purchase securities made to clients must be suitable.

FINRA also alleged that Shopoff misrepresented the financials of its principals in the promissory note offering; they claim that the firm overstated the net worth and the liquidity of the principals, who served as guarantors on the notes.

As a result of the FINRA regulatory action, the securities attorneys at The Law Office of David Liebrader have opened an investigation into the promissory note sales made by Shopoff Securities.

Shopoff Securities is a FINRA registered broker dealer based in Irvine, CA with 11 registered representatives. According to FINRA’s broker check data base, Shopoff Securities is Delaware Corporation formed in 2006, and is licensed to sell securities in 51 states and territories. The firm has been the subject of one regulatory investigation by FINRA

The firm is owned by several individuals and entities, including William Shopoff,  the firm’s President, CEO and Chief Compliance Officer.  Mr. Shopoff was named in the FINRA regulatory investigation, and has also been the subject of one customer complaint in 13 years in the business.

The allegations in the complaint filed by FINRA have not been proven, and until a judgment is rendered or an AWC is entered into by the firm no adverse inference should be drawn as to the guilt of any of the Defendants.

If you have information that might be helpful to our investigation or if you suffered losses investing with Shopoff Securities please call The Law Office of David Liebrader at (702) 380-3131 for a free, confidential consultation to discuss your legal rights and options.  Our firm takes cases on a straight contingency fee, with no money up front, and no money owed unless there is a recovery.

There is no charge for an initial consultation, so call (702) 380-3131 today to speak with an experienced securities attorney who will fight to recover your losses.

The Law Office of David Liebrader practices exclusively in the field of investment loss recovery.  For the past 25 years, we have dedicated our law practice to assisting investors who have been victims of investment fraud via fraudulent and unsuitable investment transactions.  During that time we have recovered money for over one thousand individuals, pension plans, trusts and companies.  The recoveries we have obtained via judgments, awards and settlements on behalf of our clients exceed $50,000,000.