When FINRA filed a 2019 complaint against William Shopoff and Stephen Shopoff's firm, Shopoff Securities of Irvine, California, investigators charged the Shopoffs with fraudulently selling $12.5 million of promissory note investments to 29 investors, failing to disclose that some investment proceeds would be used for personal expenses and to repay previous investors.
In 2019, lawsuits accused Shopoff Realty of failing to pay investors $31 million related to developments in Orange County, CA.
A handful of customer disputes filed against William Anthony Shopoff (CRD #1273471) alleging misstatements, omissions, various breaches, and fraud, have since resulted in settlements totaling approximately $40 million for investors who alleged the Shopoff brothers' misconduct resulted in significant, multi-million dollar damages.
Several of the customer disputes specifically named real estate as the complex products involved in the alleged fraud, and FINRA's complaint listed several specific entities, including Fund IV, LP; Shopoff Enterprises, Inc; Shopoff Enterprises Notes; Shopoff Realty Investments, LP; The Shopoff Group, LP; and TSG Fund IV, LP.
Unlike his brother Bill, Stephen Robert Shopoff (CRD #5276325), although named in FINRA's initial complaint, has no disclosures in his BrokerCheck report. A 2020 Office of Hearing Officers decision that concluded, "the Panel finds the evidence insufficient to sustain the charge that Respondents engaged in the extensive years-long securities fraud described in the complaint."
Although FINRA's allegations that Shopoff defrauded investors ultimately were reversed by the OHO, Bill Shopoff still paid settlements to investors who accused him of misconduct.
William A Shopoff's BrokerCheck report keeps the score: a $2 million settlement for allegations misstatements, omissions, and related claims in connection with real estate property transactions, a $28.75 million settlement for allegations breach of guaranty and declaratory relief relating to contract breaches and post-breach transfers, a $6.5 million settlement for allegations of breach of contract and violation of the Uniform Voidable Transactions Act, and a $4.75 million settlement for allegations the Shopoff breached the covenant of good and fair dealing, in addition to a claim for fraud based on alleged statements that were made.
If you invested with William Shopoff's Shopoff Securities, or with any broker or investment adviser whose misstatements, omissions, breaches of contract, unsuitable recommendations, or other misconduct has proven harmful to your investments or interests, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.