Goodman & Nekvasil P.A., May Recover Investor Losses on Woodbridge Mortgage Investment Funds - Scott Howard Lane (Scott Lane) Suspended from Securities Industry and Fired by Questar Capital Corporation
From August 2013 until Scott Lane’s firing in October 2013, Scott Lane was licensed with Questar Capital Corporation. Scott Lane was subsequently licensed with Center Street Securities, Inc. Scott Lane was previously licensed with State Farm VP Management Corp., FSC Securities Corporation, and LPL Financial LLC. According to FINRA’s records, Scott Lane was fired by Questar Capital Corporation on October 31, 2013. Questar Capital Corporation reported to FINRA that Scott Lane admitted that Scott Lane had altered account information on two customer account documents after they were signed by the customers. Goodman & Nekvasil, P.A. has also learned that Scott Lane sold the fraudulent Woodbridge Mortgage Investment Fund.
On December 20, 2017, the Securities and Exchange Commission (SEC) filed an action alleging that the Woodbridge investment was a massive Ponzi scheme, and that new investor money was used to pay the returns owed to existing investors. The SEC also alleges that Woodbridge's business model was a sham, and that Woodbridge and Woodbridge's owner and President, Robert H. Shapiro, misused and misappropriated investor monies. The SEC points out that Woodbridge admits in its bankruptcy filing that it has less than $12 million in its bank accounts while having investor liabilities approaching $1 billion.
The SEC also alleges that many of the properties Woodbridge purchased remain as vacant lots that have set undeveloped for several years. According to the SEC, nearly all of the purported third-party borrowers were actually limited liability companies owned and controlled by Woodbridge, which had no revenue, no bank accounts and never paid any interest under the loans.
Subsequent to Scott Lane’s firing by Questar Capital Corporation, LLC, FINRA investigated Scott Lane and brought a disciplinary action against Scott Lane. Scott Lane consented to a $5,000 fine and a 2 month suspension from the securities and investment banking industry. Scott Lane consented to the sanctions and to the entry of findings that Scott Lane altered a document that had already been signed by a member firm customer and cut and pasted the signature of a non-firm customer. The findings stated that one of Scott Lane’s customers completed the risk tolerance portion of a new account form associated with an application for a Real Estate Investment Trust (REIT). Subsequently, Scott Lane altered the risk tolerance section and the date on the form and submitted the form to Scott Lane’s member firm for approval.
FINRA also reports that Scott Lane was previously fined by the Commonwealth of Virginia State Corporation Commission for allegedly misrepresenting the benefits, advantages, conditions or terms of an insurance policy, and by making, publishing, disseminating, circulating, or placing before the public an advertisement, announcement or statement containing an assertion, representation or statement relating to the business of insurance which was untrue, deceptive or misleading.
If you invested in the Woodbridge Mortgage Investment Funds or lost money on another investment through Scott Lane, you may be able to recover your losses from Questar Capital Corporation, Center Street Securities, Inc., State Farm VP Management Corp., FSC Securities Corporation, and/or LPL Financial LLC. This is because Questar Capital Corporation, Center Street Securities, Inc., State Farm VP Management Corp., FSC Securities Corporation, and LPL Financial LLC had a duty to supervise Scott Lane.
If you invested in the Woodbridge Mortgage Investment Funds or lost money on another investment with Scott Lane, we would like to discuss the possibility of your retaining our firm to represent you in an arbitration action against Questar Capital Corporation, Center Street Securities, Inc., State Farm VP Management Corp., FSC Securities Corporation, and/or LPL Financial LLC concerning Scott Lane’s conduct. There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.
Kalju Nekvasil, Esq, formerly regional counsel with the NASD, now known as FINRA, has practiced in this area of the law for more than 35 years. Goodman & Nekvasil, P.A. has recovered more than $180 million on behalf of victimized investors. If you lost money on investments with Scott Lane and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.
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