Woodbridge Group of Companies Settles $1.2 Billion Investment Scheme Lawsuit with the SEC

Posted on May 24th, 2018 at 11:54 AM
Woodbridge Group of Companies Settles $1.2 Billion Investment Scheme Lawsuit with the SEC

From the Desk of Jim Eccleston at Eccleston Law LLC:

Woodbridge Group of Companies, LLC has agreed to settle a lawsuit filed by the SEC involving allegations that the company ran a $1.2 billion investment fraud scheme that duped more than 8,400 investors.

More specifically, in December 2017, the SEC filed a securities action in federal court in Florida, accusing Woodbridge of defrauding more than 8,400 investors through its real estate investment deals. According to the SEC, the owner of Woodbridge, Robert Shapiro, used new investor money to pay the returns owed to existing investors in a Ponzi-scheme like manner. Meanwhile. Mr. Shapiro and his family spent an exorbitant amount of investor funds for their personal use, such as to pay for luxury automobiles, jewelry, county club memberships, fine wine, and chartering private planes.

According to the terms of the settlement, Woodbridge’s funds will be permanently barred from further violations of the securities laws pursuant to an injunction. The court also will determine at a later date if disgorgement of ill-gotten gains and a civil penalty are appropriate.

Woodbridge currently is in Chapter 11 bankruptcy. Woodbridge filed for bankruptcy around the same time the SEC brought its December lawsuit, claiming 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 in Woodbridge through a financial advisor, and have 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 investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, 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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