NEWARK, N.J. (Legal Newsline) — New Jersey Attorney General Gurbir S. Grewal announced April 16 that Jeffrey Mitchell Isaacs, JB Financial Resources, and related entities will pay $750,000 after allegations of a nationwide Ponzi scheme that specifically involved $7 million in investments for New Jersey participants.
“Ponzi schemes only work when unscrupulous individuals lure unsuspecting victims into a scam for their own profit,” Grewal said in a statement. “To protect New Jersey from these types of Ponzi schemes, we will continue to take action against those who seek to harm our residents and our financial markets.”
According to allegations, the defendants sold unregistered securities for the Woodbridge Group of Companies. This company has been charged by the U.S. Securities and Exchange Commission (SEC) with operating a Ponzi scheme affecting 8,400 investors through the United States.
“Despite having no legal authority to sell investments in New Jersey, Isaacs sold the unregistered Woodbridge securities to New Jersey investors,” said Kevin Jespersen, acting director of the Division of Consumer Affairs, in a statement. “Isaacs shamelessly profited from this alleged Ponzi scheme while the investors that purchased the unregistered securities are now left to deal with the devastating impact of trying to recover their investments.”