User:Nofway/sandbox
Woodbridge Group of Companies filed for bankruptcy amid the departure of its chief executive and an investigation into potential securities fraud linked to $1 billion in investments. The Chapter 11 filing on Monday in U.S. Bankruptcy Court in Wilmington, Delaware, cited “unforeseen costs associated with ongoing litigation and regulatory compliance.” The U.S. Securities and Exchange Commission (SEC) has been probing whether Woodbridge defrauded investors who invested more than $1 billion. The agency also sought more information on about 236 limited liability companies Woodbridge formed, according to an October SEC court filing. [1]
On December 21, 2017 the U.S. Securities and Exchange Commission said on Thursday it had sued luxury real estate developer Robert H. Shapiro (not to be confused with Attorney Robert L. Shapiro) and his Woodbridge Group of Companies for allegedly operating a $1.2 billion Ponzi scheme targeting thousands of investors. According to the SEC’s complaint, Shapiro ran a “sham” business model that allegedly defrauded more than 8,400 investors, including many elderly, in unregistered Woodbridge funds. It said Shapiro promised 5 to 10 percent annual interest on money he said would be used for loans to commercial property owners paying 11 to 15 percent interest rates. “Mr. Shapiro is cooperating with the bankruptcy to protect the assets held for the benefit of Woodbridge’s stakeholders,” Ryan O’Quinn, a lawyer for Shapiro, said in e-mail. “He denies any allegation of wrongdoing and looks forward to his opportunity to defend himself in a court of law.” <ref>https://www.reuters.com/article/us-woodbridge-sec-charges/sec-sues-bankrupt-woodbridge-group-over-1-2-billion-ponzi-scheme-idUSKBN1EF2GP<ref> Nofway (talk) 17:30, 30 December 2017 (UTC)