Texas Commissioner revokes license of advisor for selling over $5m of unregistered investments in Woodbridge Wealth Solutions
From 2015 through 2017, Kim Diane Butler sold more than $5 million of unregistered, alternative investments in Woodbridge Wealth Solutions, LLC.
Kim Diane Butler, of Mt. Enterprise Texas, has agreed to the revocation of her license as an investment adviser representative with the Texas Securities Commissioner. The revocation is part of a disciplinary order that Texas Securities Commissioner, Travis J. Iles entered on September 9, 2020.
From 2015 through 2017, through a network of organizations she owned and operated, Butler sold more than $5 million of unregistered, alternative investments in Woodbridge Wealth Solutions, LLC. In December 2017, the United States Securities and Exchange Commission (SEC) filed a complaint against Woodbridge alleging it to be a massive Ponzi scheme that raised more than $1.2 billion from 8400 investors across the country.
In connection with her sales of Woodbridge, Butler received more than $300,000 in commissions. She breached the fiduciary duties owed to her clients by never disclosing the fact that she received a commission from the sales and never discussing the conflict of interest that existed due to her financial incentive to recommend clients purchase Woodbridge investments.
In addition to the revocation of her license, Butler is ordered to cease and desist from engaging in the unregistered sales of securities and from engaging in further fraudulent conduct.