UNITED STATES SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") against Alan H. New ("Respondent"). The Commission finds that On April 26, 2022, a final judgment was entered against New, permanently enjoining him from future violations of Section 5 of the Securities Act of 1933 ("Securities Act") and Section 15(a)(1) of the Exchange Act, in the civil action entitled Securities and Exchange Commission v. Alan H. New, et al., Civil Action Number 1:18-cv-03975-SEB-MJD, in the United States District Court for the Southern District of Indiana. The Commission's complaint alleged that, among other things, between September 2013 and August 2017, New, through Synergy, offered and sold Woodbridge securities. Synergy was not associated with a registered broker-dealer. Although New was associated during this time-period with NY Life, a registered broker-dealer, NY Life did not hold or offer the Woodbridge securities and New engaged in "selling away" these offerings to Synergy's clients. New sold investors two primary types of securities: (1) a twelve-to-eighteen month term promissory note bearing 5%-8% interest that Woodbridge described as First Position Commercial Mortgages ("FPCM"), and (2) seven different private placement fund offerings with five-year terms ("Fund Offerings"). For the FPCMs, New, through Synergy, received a transaction based commission from Woodbridge equivalent to the difference of the 9% wholesale annual interest rate Woodbridge offered to Synergy and New and the 5% to 8% annual interest Synergy and New offered to investors. For the Fund Offerings, New, through Synergy, received a 5% sales commission that Woodbridge purposefully mischaracterized as a "marketing bonus," to avoid the appearance of paying transaction based commissions. New, through Synergy, received approximately $1.5 million in transaction based commissions from Woodbridge earned as a result of raising approximately $15 million through the sale of Woodbridge securities to approximately 100 investors.

Order

Bar (Permanent)

association with a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO

Indefinite

5/17/2022

Participating in any offering of a penny stock

Indefinite

5/17/2022

FINRA

Without admitting or denying the findings, New consented to the sanction and to the entry of findings that he failed to provide documents and information requested by FINRA during the course of an ongoing investigation of his participation in the sale of promissory notes.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All capacities

Indefinite

4/8/2020

Claimant alleges that he was either intentionally misled about the risks of the portfolio consisting of Woodbridge Promissory Notes or the RR was inexcusably reckless in failing to understand those risks. Claimant has not alleged the time period in which the investment was purchased away from the Firm. Claimant alleges at least $110,000.00 in actual damages.

$110,000.00

$39,000.00

Customer alleges that he was misled regarding an unregistered investment in Woodbridge Mortgage Investment Fund purchased away from the Firm, in or about October 2015, from which he lost $200,000.00. Customer is to seeking to rescind his New York Life Variable Annuity without penalty.

$200,000.00

$6,851.81

Plaintiff alleges that material facts and the risks associated with an unregistered investment in Woodbridge Mortgage Investment Fund purchased in April 2017 were not disclosed. Plaintiff is seeking the return of his investment ($65,000) less any income received, plus 8% interest, costs and attorney's fees.

$37,500.00

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission ("Commission") alleges that from at least September 2013 through August 2017, the Defendants in this action served as unregistered brokers on behalf of Woodbridge Group of Companies LLC and its affiliates ("Woodbridge"), raising approximately $15 million from the offer and sale of Woodbridge's unregistered securities to at least 100 retail investors located in at least nine states. The Defendants, all based in Fort Wayne, Indiana, collectively earned more than $1.5 million in transaction-based sales commissions. The Defendants pitched investors, both pre-existing customers and newly found, via telephone, e-mail and at in-person meetings providing them Woodbridge's sales materials touting Woodbridge's securities as "safe and secure." Unbeknownst to the Defendants' customers, many of whom had invested their retirement savings in response to the Defendants' sales pitches, Woodbridge was actually operating a massive Ponzi scheme, raising more than $1.2 billion before collapsing in December 2017 and filing for bankruptcy. Once Woodbridge filed for bankruptcy, investors stopped receiving their monthly interest payments, and have not received a return of their investment principal. At all relevant times, the Defendants sold Woodbridge's securities without being registered with the Commission to do so, nor were they associated with a registered broker-dealer who was selling Woodbridge's securities. Further, Woodbridge's securities were not registered with the Commission nor did they qualify for an exemption from registration. Defendants were thus not permitted to sell Woodbridge's securities. By engaging in this conduct the Defendants each violated Sections 5(a) and 5(c) of the Securities Act of 1933 ("Securities Act") and Section 15(a)(1) of the Securities Exchange Act of 1934.

Judgment Rendered

Civil and Administrative Penalty(ies)/Fine(s)

Disgorgement

$250,518.50

Monetary Penalty other than Fines

Injunction

Claimants allege that in November 2014, January 2015, August 2016 , September 2015, December 2016 and March 2017 they were advised to purchase and subsequently roll over unregistered, nonexempt securities in the form of Woodbridge Promissory Notes. Claimants allege that the Promissory Notes along with an investment in 1 Global Capital LLC in September 2017 were misrepresented as safe and that their Woodbridge investments gave them ownership in certain parcels of property throughout the United Sates. Claimants seek judgment for all incidental losses, damages for breach of fiduciary duty, disgorgement of commissions, fees and other compensation, rescission of all existing investments and punitive damages.

$100,000.00

Claimants allege that in April 2015, February 2016 and September 2016 they were sold unregistered, nonexempt securities in the form of Woodbridge Promissory Notes. Claimants allege that the Promissory Notes along with an investment in FIP, LLC in February 2015 were unsuitable and inappropriate and that the risks were not disclosed. Claimants further allege that the products were sold away from the broker-dealer and seek $168,308.58 plus interest, cost and fees.

$168,308.58

$75,000.00

Claimants allege that they were sold unregistered and fraudulent investments in Woodbridge Mortgage Investment Funds in January, March and July 2015.Claimants further allege that the investments were falsely represented as safe, secure and low risk and seek recovery of damages in the amount of $125,000 plus costs, interest, fees and punitive damages.

$260,000.00

$92,937.38

Claimants, who are not customers of the Firm, allege that the were sold unregistered and fraudulent investments in Woodbridge Mortgage Investment Funds in February and October 2015 and February 2016. Claimants further allege that the investments were falsely represented as safe, secure and low risk and seek recovery of damages in the amount of $325,000 plus costs, interest, fees and punitive damages.

$325,000.00

$115,740.68

Claimant alleges that material facts and the risks associated with an unregistered investment in Woodbridge Mortgage Investment Fund purchased in April 2014 and October 2015 were not disclosed. Claimant is seeking recovery of damages in the amount of $350,000 as well as costs, interest and attorney's fees.

$350,000.00

$123,935.92

Claimants allege that material facts and the risks associated with an unregistered investment in Woodbridge Mortgage Investment Fund purchased in September 2013, January 2014 and July 2016 were not disclosed. Claimants also allege that material facts involving Future Income Payments, LLC, another unregistered investment, purchased in October 2014 were also not disclosed. Plaintiff is seeking recovery of damages in the amount of $900,000 as well as costs, interest and attorney's fees.

$900,000.00

$405,247.75

Customer alleges that he was misled regarding an unregistered investment in Woodbridge Mortgage Investment Fund purchased in August 2014. Customer is seeking the return of his investment ($65,000)

$65,000.00

$20,000.00

Claimant alleges that in February 2015 and November 2015 she was sold unregistered and misrepresented investments. Claimant further alleges that in September and December 2016, she was advised to roll over the investments and that they are now worthless. Claimant seeks to recover damages of at least $170,000 in lost principal as well as lost interest, reasonable costs and attorneys' fees.

$170,000.00

$45,000.00

Plaintiff alleges that material facts and the risks associated with an unregistered investment purchased in Woodbridge Mortgage Investment Fund in December 2013 were not disclosed. Claimant seeks recovery of damages in the amount of at least $400,000.00

$400,000.00

$155,958.52

Claimants allege that in April 2014, June 2015 and February 2016 they were sold unregistered and fraudulent investments in Woodbridge Mortgage Investment Fund. Claimants seek to recover damages of at least $319,000 and lost opportunity costs, punitive damages, costs and interest.

$319,000.00

$125,544.66

Claimant alleges that in July 2015, April 2016 and December 2016 he was sold unregistered and fraudulent investments in Woodbridge Mortgage Investment Fund . Claimant seeks to recover damages of at least $550,500 and lost opportunity costs, punitive damages, costs and interest.

$550,500.00

$241,275.15

Claimants allege that in November 2013 and July 2014 they were sold unregistered and fraudulent investments in Woodbridge Mortgage Investment Fund. Claimants seek to recover damages of at least $100,001 and lost opportunity costs, punitive damages, costs and interest.

$100,001.00

$39,359.94