IRVINE, Calif., May 21, 2020 /PRNewswire/ -- Today, Shopoff Securities Inc. (SSI), its President and Chief Executive Officer William "Bill" Shopoff, and Senior Vice President Steven Shopoff were all exonerated in a groundless disciplinary matter brought by the Financial Industry Regulatory Authority (FINRA), marking the close of a needless five-year regulatory proceeding.
The ruling by a three-person hearing panel found no merit to the baseless allegations asserted by FINRA, primarily involving working capital loans, all of which were personally guaranteed by Mr. Shopoff, a nationally recognized and respected real estate entrepreneur. FINRA alleged that the loans from Mr. Shopoff's family and longtime friends should have been accompanied by additional disclosures, but the hearing panel rejected these allegations.
Significantly, no lenders suffered any harm or losses – in fact, all of the lenders received substantial interest and principal payments as agreed. Moreover, nearly all of the loans have been fully repaid.
"Today's ruling in favor of William and Steven Shopoff and Shopoff Securities – a complete exoneration - marks the end of an unwarranted case where there were no victims, no losses, no lender complaints - and no securities or regulatory violations," said Bruce Kelson of Schnader Harrison Segal & Lewis LLP, attorney for Bill Shopoff. "In fact, all of the lenders involved signed sworn declarations supporting Mr. Shopoff and refuting FINRA's allegations regarding the working capital loans. In this disciplinary case, FINRA attempted to stretch the boundaries of the securities laws in an unfortunate example of regulatory overreach. This is a case that should never have been pursued."
"I am pleased that this meritless case is finally closed, and we have a positive outcome, as expected," said Bill Shopoff. "For 28 years, I've been proud to operate a family of companies that have brought success to our employees and investors. Despite this distraction, we have continued to move forward with a number of exciting business ventures that will create new jobs and new economic opportunities."
Earlier this year, Shopoff and Contour announced plans to develop the $280 millionDream Hotel Las Vegas, a 450-room luxury lifestyle hotel on the Las Vegas Strip set to open in 2023. Shopoff also is set to begin construction on a 30-unit luxury condominium project at their exclusive Uptown Newport project.
Other Shopoff projects that are well underway include:
The Lodge & The Resort, a 5-Star, two luxury hotels and condominium communities in Taos Ski Valley, New Mexico.
The Magnolia Tank Farm in Huntington Beach, which will transform a blighted industrial site into a vibrant mixed-use coastal community with a Lodge, restaurants, neighborhoods, parks, trails, and viewpoints.
East South Street, set in Anaheim's Platinum Triangle, which will convert a former industrial complex into nearly 550 Spanish, modern and Craftsman style apartments and townhomes.
Thursday'sdecision concluded the FINRA matter with a ruling in the favor of Shopoff and SSI. The ruling by the hearing panel rejected FINRA's claims, and found that there were no violations relating to the working capital loans. FINRA also complained about certain factually true statements about the Shopoffs as contained in third party due diligence reports prepared by an outside vendor – but the hearing panel rejected those claims as well.
The case arose out of a routine FINRA cycle examination dating back to 2014. Four years later, FINRA chose to move forward with their unwarranted regulatory complaint.
The Shopoff companies have a 28-year history of high-quality operations and a well-earned reputation for their dedication to personal integrity, operational transparency, and industry expertise, as well as a total commitment to the success of their investors. The Shopoffs have time and time again proven themselves to be reliable and highly ethical partners.
About Shopoff Realty Investments
Shopoff Realty Investments is an Irvine, California-based real estate firm with a 28-year history of valueadd and opportunistic investing across the United States. The company primarily focuses on proactively generating appreciation through the repositioning of commercial income-producing properties and the entitlement of land assets. The 28-year history includes operating as Asset Recovery Fund, Eastbridge Partners and Shopoff Realty Investments (formerly known as The Shopoff Group). Performance has varied in this time frame. For additional information, please visit www.shopoff.com or call (844) 4SHOPOFF.
This is not an offering to buy or sell any securities. Such offer may only be made through the offerings memorandum to qualified purchasers. Any investment in Shopoff Realty Investments programs involves substantial risks and is suitable only for investors who have no need for liquidity and who can bear the loss of their entire investment. There is no assurance that any investment strategy will succeed to meet its investment objectives. Securities offered through Shopoff Securities, Inc. member FINRA/SIPC, 2 Park Plaza, Suite 770, Irvine, CA 92614, (844) 4-SHOPOFF.