SEC charges ex-Money journalist in Ponzi scheme

The Securities and Exchange Commission charged a former financial journalist with unlawfully selling the securities of a Ponzi scheme company that collapsed, reports Bruce Kelly of Investment News.

Kelly writes, “Prominent among the individuals newly charged is Jordan E. Goodman, a self-described nationally recognized expert on personal finance who for 18 years worked on the editorial staff of Money magazine, where he served as a Wall Street correspondent, according to the SEC. He also appears frequently on Fox News Network, Fox Business Network and other television stations.

“According to the SEC’s complaint, Mr. Goodman helped a company known as Knowles Systems raise $147 million from investors who bought the Woodbridge notes. That’s roughly 12% of the total amount of money raised in the scheme, which purportedly invested in real estate assets.

“Mr. Goodman gave Woodbridge publicity and circulated communications about Woodbridge, which, though not a direct offer of sale, described the securities, according to the SEC. Unbeknownst to the journalist’s readers and viewers, many of whom used their retirement savings to purchase the Woodbridge securities, Mr. Goodman received a sales commission each time they invested through Knowles Systems. He was paid almost $2.3 million in commissions and marketing fees, which he failed to disclose.”

Read more here. According to his LinkedIn profile, Goodman worked at Money from 1979 to 1997.