Seven senior residents not too long ago filed a civil swimsuit in opposition to a neighborhood insurance coverage agent, claiming they collectively misplaced a whole bunch of 1000’s of from their retirement accounts after an agent inspired them to spend money on a nationwide Ponzi scheme.
On March 11, Reba Casler, Richard and Dorothy McCarty, Ted and Janet Miller, and Robert and Kathy Lane filed a civil swimsuit in opposition to Ashley Wyrick, an agent with the Russiaville-based workplace of Gangwer Insurance coverage Company, claiming they misplaced giant parts of their retirement funds after she inspired them to buy unregistered and unlicensed securities. These securities, in accordance with the swimsuit, had been part of the $1 billion nationwide Ponzi scheme by way of Woodbridge Mortgage Funding Funds. The Securities and Change Fee has filed a number of expenses in relation to Woodbridge Funding, dubbing the enterprise “a sham virtually from inception.”
In keeping with the swimsuit, which additionally names Gary and Cathryn Gangwer and Gangwer Insurance coverage Company itself, the people submitting the swimsuit had been every longtime shoppers of Wyrick’s. By way of the course of her work with these submitting the swimsuit, it’s alleged that Wyrick “made numerous misrepresentations to every plaintiff in reference to their buy of their Woodbridge Investments.”
These included claims that the investments had been “very protected,” the principals had been assured, investments had been protected in opposition to loss, obtainable to be withdrawn at any time, effectively suited to the aged or these on a hard and fast earnings, that Wyrick wouldn’t be compensated for the gross sales of the investments, that the agent had a license in “retirement planning,” and that she was “competent to offer funding recommendation to her retired shoppers.” The swimsuit acknowledged the claims by Wyrick had been misrepresentations.
In keeping with the fits, it was discovered that the investments had been “extraordinarily dangerous,” not assured, and “extremely liquid.” Additionally, the swimsuit claimed the principal investments couldn’t be withdrawn readily, weren’t appropriate for these investing, and that Wyrick was not licensed to promote securities in Indiana, nor was Gangwer Insurance coverage. It was additionally claimed that Wyrick “was not educated, skilled, and didn’t have expertise within the sale of securities in Indiana” and each Wyrick and Gangwer Insurance coverage earned commissions for the sale of Woodbridge Mortgage Funding Funds securities.
The primary of the plaintiffs to spend money on Woodbridge Funding, in accordance with the swimsuit, had been the McCartys. Richard and Dorothy invested $25,000 of their retirement funds right into a Woodbridge Funding at Wyrick’s behest in January 2016. They solely acquired a “small portion of their principal investments” earlier than Woodbridge went into default.
Equally, in June 2017, on the urging of Wyrick, Casler invested a “giant majority” of her retirement funds in Woodbridge, buying two promissory notes. One was for $28,000 and the opposite for $124,000. These ultimately went into default, with Casler solely receiving a “small portion” of the whole sum owed to her.
For the Millers, who invested $25,000 of their retirements by way of Wyrick with a promissory be aware by way of Woodbridge, the story was related with them solely receiving a “small portion” of their funding.
Lastly, the Lanes invested $110,000 of their retirement funds into Woodbridge by way of Wyrick. Kathy invested $84,000, and Robert invested $26,000. In addition they solely acquired a small portion of their principal investments previous to default.
Every plaintiff, in accordance with the swimsuit, “successfully misplaced nearly all of their funding.”
A number of counts had been alleged within the swimsuit, together with three violations of the Indiana Securities Act, monetary exploitation of senior shoppers, constructive fraud, breach of fiduciary obligation, and negligence.
Wyrick didn’t reply to a request for remark.