Goodman & Nekvasil P.A. Files Arbitration Claim on Woodbridge Mortgage Investment Fund – Michael John Rappa (Michael Rappa), Financial Advisor Formerly Licensed with Foresters Equity Services, Inc.
Goodman & Nekvasil, P.A. has filed an arbitration claim against Foresters Equity Services, Inc. seeking to recover monies lost by an investor who invested in the fraudulent Woodbridge Mortgage Investment Fund through Michael Rappa. Michael Rappa was licensed with Foresters Equity Services, Inc. from 2010 to 2017.
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 Michael Rappa, you may be able to recover your losses from Foresters Equity Services, Inc. This is because Foresters Equity Services, Inc. had a duty to supervise Michael Rappa.
If you invested in the Woodbridge Mortgage Investment Funds through Michael Rappa, we would like to discuss the possibility of your retaining our firm to represent you in an arbitration action against Foresters Equity Services, Inc. concerning Michael Rappa’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 Michael Rappa 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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