Alan Harold New of Fort Wayne Indiana a stockbroker registered with NYLife Securities LLC is the subject of a customer initiated investment related arbitration claim in which the customer requested $110,000.00 in damages based upon allegations of misleading statements or omissions being made by New concerning the risks of Woodbridge Promissory Notes which he sold to the customer during the time that he was associated with NYLife Securities. Financial Industry Regulatory Authority (FINRA) Arbitration No. 19-03554 (Dec. 31, 2019).
FINRA Public Disclosure reveals that New is referenced in fourteen more customer initiated investment related disputes containing allegations of his wrongdoing while associated with NYLife Securities. On February 28, 2019, a customer initiated investment related civil action involving New’s conduct was settled for $37,500.00 in damages based upon allegations of New’s failure to communicate the risks pertaining to Woodbridge Mortgage Investment Fund when he effected the sale of those unregistered investments in April of 2017. Civil Action No. 02D01-1804-PL-000120.
On May 7, 2019, another customer initiated investment related arbitration claim concerning New’s activities was resolved for $92,937.38 in damages founded on accusations of unregistered and fraudulent Woodbridge Mortgage Investment Funds being sold to the customer by New. FINRA Arbitration No. 18-02454. The claim also alleged that the investments were falsely portrayed by New as low risk and secure.
New is referenced in another customer initiated investment related arbitration claim which was settled for $75,000.00 in damages supported by allegations that New effected sales of unregistered investments which caused the customer losses. FINRA Arbitration No. 18-03318 (June 18, 2019).
According to the claim, the customer had been placed into FIP LLC and promissory notes which failed to be suitable. The claim also alleged that these securities transactions were effected by New in violation of securities registration laws and away from NYLife Securities.
The stockbroker is the subject of another customer initiated investment related complaint which was settled on November 26, 2019 to resolve allegations of New’s private securities transactions and misrepresented sales of Woodbridge Mortgage Investment Fund causing the customer to sustain losses.
New has also been charged by Securities and Exchange Commission (SEC) in a Complaint alleging that through Synergy Investment Services LLC, New and his partner David N. Knuth facilitated $15,000,000.00 in unregistered Woodbridge securities sales. SEC v. Alan H. New et al. Case No. 1:18-cv-03975 (Dec. 17, 2018).
According to the Complaint, at least $1,500,000.00 in commissions had been generated from the illicit sales. SEC claimed that the securities had been touted by New as safe but in actuality the investments contained substantial risk. The Complaint alleged that Woodbridge was nothing more than a Ponzi scheme which collapsed in December of 2017 causing investors to be at risk of losing all of their principal. The Complaint alleged that New’s unregistered offer and sale of Woodbridge securities constituted the violation of Securities Act of 1933 Section 5 and Securities Exchange Act of 1934 Section 15.
New’s employment with NYLife Securities was terminated on August 30, 2016.
