Northridge Holdings and Glenn Mueller recently released a letter to investors acknowledging the complaints and the cease and desist orders from four states as well as an investigation from the Securities Exchange Commission (“SEC”). The letter states that while the complaints and orders from state securities agencies are pending, Northridge can no longer make interest payments or distributions to investors.
As expressed in a previous article posted by the securities attorneys of Lubiner, Schmidt & Palumbo, Northridge has received complaints, as well as cease and desist orders from the four aforementioned state securities agencies as well as the SEC. The complaints charge Northridge with selling unregistered securities in addition to acting as an unregistered broker dealer. Northridge presented itself in marketing material as being exempt from federal registration requirements for securities, however they never filed any of the necessary forms for exemption with any state securities agency or the SEC.
The recent announcement of a stop to distributions and interest payments will have a devasting impact on retired investors relying on the interest payments from Northridge to cover living expenses. In addition, investors who were set to have their principal or total investment returned to them on the maturity date listed on their promissory notes will have to wait now for an indefinite period of time.