Woodbridge Ponzi Scheme Involves East Tennessee Victims - Articles

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Posted by: Chelsea Bennett on Jan 28, 2019

Dozens of Woodbridge investors from East Tennessee fell victim to a billion-dollar Ponzi scheme involving Richard Fritts of Farragut-based Fritts Financial, Knox News reports. The U.S. Securities and Exchange Commission (SEC) filed charges last month against Fritts because neither he nor his company were registered to sell securities in Tennessee, a legal requirement. He claims that he believed the loans did not qualify as securities. Fritts earned over $800,000 in commissions between July 2014 and November 2017. Regulators with the SEC have filed civil charges against 18 people and 10 companies for their roles in recruiting investors; the SEC is seeking fines and repayment of commissions. Bankruptcy proceedings for Woodbridge are ongoing, so it is unclear how much money, if any, the investors will recoup.