On December 20, 2017, the Securities and Exchange Commission (SEC) filed an action alleging that the Woodbridge investment was a massive Ponzi scheme, and that new investor money was used to pay the returns owed to existing investors. The SEC also alleges that Woodbridge's business model was a sham, and that Woodbridge and Woodbridge's owner and President, Robert H. Shapiro, misused and misappropriated investor monies. The SEC points out that Woodbridge admits in its bankruptcy filing that it has less than $12 million in its bank accounts while having investor liabilities approaching $1 billion.
The SEC also alleges that many of the properties Woodbridge purchased remain as vacant lots that have set undeveloped for several years. According to the SEC, nearly all of the purported third-party borrowers were actually limited liability companies owned and controlled by Woodbridge, which had no revenue, no bank accounts and never paid any interest under the loans.
If you purchased a Woodbridge Fund from a licensed financial advisor, we would like to discuss the possibility of you retaining our firm to represent you in an arbitration action against that advisor’s brokerage firm or investment advisor. There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney's fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf. The filing of such a case should not affect your rights in the Woodbridge bankruptcy. OUR FIRM HAS ALREADY BEGUN FILING SUCH ARBITRATION CLAIMS.
If you invested in Woodbridge and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.