William Shopoff: Broker William Shopoff Named in FINRA Complaint

William Shopoff: Broker William Shopoff Named in FINRA Complaint | Goodman & Nekvasil P.A., May Recover Investor Losses

William Shopoff CRD # 1273471

William Shopoff has been licensed with Shopoff Securities, Inc. since 2007 in Irvine, California.

According to FINRA: FINRA reports that William Shopoff was named in a FINRA complaint alleging his member firm, through him as the president and chief executive officer (CEO) and the firm's senior vice president for investor relations (Vice President), fraudulently sold promissory note investments to investors in willful violation of Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder and FINRA Rules 2020 and 2010. The complaint alleges that William Shopoff formed a fund with the stated purpose of raising funds for his private real estate firm (Shopoff Realty). William Shopoff and the Vice President each distributed or directed others at the firm to distribute the Private Placement Memorandum (the PPM), the fund Subscription Agreement template (subscription agreement), and a document entitled Loan Guaranty Agreement (the guaranty) to fund investors, each of which William Shopoff approved and contained certain material misrepresentations and omissions of facts. The PPM's material misrepresentations included William Shopoff's Realty debt, the profits and commission that William Shopoff Realty received or could receive from anticipated sales of projects described in the PPM, the identity of the chief financial officer and senior vice president for land acquisitions for William Shopoff Realty and the maximum size of the offering. The PPM also omitted information necessary to make statements in the PPM not misleading. The subscription agreement contained a material misrepresentation because it falsely stated that the fund had no current financial or operating history and the guaranty omitted material information about the William Shopoffs' liquidity, net worth, cash balance and assets that was necessary for an investor to assess the risk involved in the fund investment. William Shopoff and the Vice President misrepresented this material information in the PPM, subscription agreement and guaranty, failed to disclose the material information omitted to the fund investors and verbally misrepresented material facts by stating that the fund investment proceeds would be used for working capital needs or general corporate purposes of William Shopoff Realty or its affiliates.

According to FINRA: The complaint also alleges that William Shopoff, the firm, and the Vice President, offered and sold promissory note investments in a corporation that Shopoff authorized. However, William Shopoff, the firm, and the Vice President failed to disclose that some investment proceeds would actually be transferred to William Shopoff and his personal trust to pay his and his wife's personal expenses, and that approximately $165,000 was used for those personal expenses. William Shopoff, the firm, and the Vice President also failed to disclose that some investment proceeds would be used to repay previous Notes investors. Furthermore, although William Shopoff and his wife personally guaranteed the investments, William Shopoff, the firm and the Vice President, failed to disclose to the investors that William Shopoff and his wife's assets were largely illiquid. The complaint further alleges that the William Shopoff, the firm and the Vice President made unsuitable recommendations without a reasonable basis to do so with respect to the notes. The investments in the fund offering and corporation offering were not suitable for any investor because investment proceeds were used to pay for William Shopoff's personal expenses and to repay previous investors, the financial condition of William Shopoff Realty, the corporation and the fund and the limited liquidity of the trust that acted as the guarantor for the investments. In addition, the complaint alleges that the firm, through William Shopoff, fraudulently sold two private placement offerings that were sponsored by his private real estate firm. 

If you lost any money on investments with William Shopoff, you may be able to recover your losses. If you lost money on investments with William Shopoff and believe the investments may have been unsuitable or otherwise improper for you, we would like to discuss the possibility of your retaining our firm to represent you in an arbitration action concerning William Shopoff’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 William Shopoff 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.  

Shopoff, William Shopoff, Investment Fraud Attorney, Stockbroker Misconduct Disciplinary Actions, Unsuitable Investment Advice, Investment Fraud, Churning, Misrepresentation and Omission of Material Facts, Elder Fraud, Unauthorized Trading, Theft, Selling Away, Unapproved Outside Business, Nationwide, PIABA, SEC, Securities Exchange Commission, NASD, National Association of Securities Dealers, NASDAQ, Dow Jones, Wall Street, New York Stock Exchange

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