Two Commercial Finance Consultants Charged By SEC in Ponzi Scheme

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Two commercial finance consultants were charged by the SEC earlier this week for their alleged role in soliciting investors to place their savings into mortgage-backed securities issued by Woodbridge Group of Companies, LLC, a company revealed to be a $1.2 billion ponzi scheme.

Barry Kornfeld and Ferne Kornfeld of Parkland, Florida, allegedly earned $3.7 million in commissions by selling unregistered securities to more than 500 investors. Barry Kornfeld was already barred by the SEC for previous securities violations, the complaint states. The Kornfelds taught a “conservative retirement, income planning and social security” class at Florida Atlantic University, where the investments were pitched, the SEC says.

FEK Enterprises, Inc. DBA First Financial Tax Group, the company the Kornfeld’s operated, is also named in the complaint.

Their LinkedIn profiles, however, currently list them as the owners of Value Capital Funding, a small business financing broker in Boca Raton, FL.

Read the SEC’s complaint here

Last modified: April 20, 2019
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