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

Tags: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston

Return to Archive

TESTIMONIALS

Previous
Next

As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

Bill C. and Dan M.

LATEST NEWS AND ARTICLES

June 27, 2022
SEC Investigates A.G. Morgan Financial Advisors and Others For Selling Unregistered Securities

The Securities and Exchange Commission (SEC) is investigating Vincent Camarda, James McArthur, and A.G. Morgan Financial Advisors.

June 24, 2022
SEC Charges Advisors and Their Firm With Reg BI Violations Over Sales of GWG L Bonds

The Securities and Exchange Commission (SEC) has charged Western International Securities and five of its advisors with violating Regulation Best Interest (Reg BI) when they recommended and sold high-risk debt securities known as L Bonds to retirees and other retail investors.

June 23, 2022
Former Credit Suisse Advisor Prevails in Deferred Compensation Claim

A former Credit Suisse advisor has prevailed on a $2.2 million arbitration claim after alleging that the firm improperly withheld his deferred compensation when it discontinued its U.S. brokerage business in 2015.