Gary Pevey/Gary L. Pevey Formerly of Mutual Securities, Inc. Sold Fraudulent Investment | Goodman & Nekvasil P.A. Files Arbitration Claim on Woodbridge Mortgage Investment Fund
Gary Pevey was licensed with Mutual Securities, Inc. from 2011 until Gary Pevey’s firing in 2018. Goodman & Nekvasil, P.A. has learned that Gary Pevey sold the fraudulent Woodbridge Mortgage Investment Fund and has filed an arbitration claim against Gary Pevey’s employer, Mutual Securities, Inc., on behalf of an investor seeking to recover money lost on the fraudulent Woodbridge Investment.
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.
If you invested in the Woodbridge Mortgage Investment Funds through Gary Pevey, you may be able to recover your losses from Mutual Securities, Inc. This is because Mutual Securities, Inc. had a duty to supervise Gary Pevey.
If you invested in the Woodbridge Mortgage Investment Funds through Gary Pevey, we would like to discuss the possibility of your retaining our firm to represent you in an arbitration action against Mutual Securities, Inc. concerning Gary Pevey’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. You will continue to own your claim in the Woodbridge Bankruptcy; our case involves a separate, additional avenue of recovery.
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 invested in the Woodbridge Mortgage Investment Funds with Gary Pevey 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.