Woodbridge Group of Companies Under Scrutiny for its Purchase of Owlwood Estate in Los Angeles, California

Posted on March 9th, 2018 at 4:57 PM
Woodbridge Group of Companies Under Scrutiny for its Purchase of Owlwood Estate in Los Angeles, California

From the Desk of Jim Eccleston at Eccleston Law LLC:

In September 2016, Woodbridge Group of Companies purchased the famous Owlwood estate in Los Angeles, California for $90 million. Owlwood estate, once owned by pop duo, Sonny & Cher, was purchased by Woodbridge in order to renovate the property and sell it back to make a profit.

Almost a year late, in July of 2017, Woodbridge put the property back on the market for $180 million. Moreover, in an official statement, Woodbridge’s owner, Robert Shapiro, assured investors that he had assembled a team of well-known architects to convert and upgrade the property.

However, according to the SEC, Woodbridge never renovated the Owlwood estate, and Mr. Shapiro through Woodbridge used new investor money to pay the returns owed to existing investors in a Ponzi-scheme like manner. At the same time, Mr. Shapiro and his family spent an exorbitant amount of investor funds for their personal use, such as to pay for luxury automobiles, jewelry, country club memberships, fine wine, and chartering private planes.

As a result of its findings, the SEC filed a securities action in Florida, accusing Woodbridge of defrauding more than 8,400 investors through its real estate investment deals.

Around the same time, Woodbridge filed for Chapter 11 bankruptcy protection. Woodbridge stated the reasons for the bankruptcy filing relate to the fact that it owes $750 million to noteholders as its primary debt along with having incurred significant compliance costs. 

Investors need to be concerned about Woodbridge and the future of their debt or equity investments. Investors who have invested with Woodbridge, or a related entity and suffered losses, should contact us to determine if there is any recourse to recover their investment losses. 

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial advisors including Broker Litigation & ArbitrationStrategic Consulting ServicesRegulatory  MattersTransition Contract Review, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

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