Small Town, Big Problem: Commissioner Revokes Investment Adviser Representative from Mt. Enterprise, Texas

Sep 9

Kim Diane Butler, of Mt. Enterprise Texas, agreed to the revocation of her license as an investment adviser representative with the 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 $5,000,000 of unregistered, alternative investments in Woodbridge Wealth, LLC. In December of 2017, the 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. Butler 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.