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Woodbridge Investment Bankruptcy Lawyer

Woodbridge Investment Bankruptcy Lawyer

The Woodbridge Group of Companies, LLC, along with former CEO Robert Schapiro, is now under investigation by the Securities and Exchange Commission for potentially orchestrating a major fraud.

What You Can Do & How We Can Help

If you were an investor in these related real estate investment companies, you are entitled to immediate relief by filing a claim in the bankruptcy proceedings. Time is limited and it is important you speak with an attorney immediately. You should contact our lawyers immediately for a free case consultation. Please use the form below to contact our Business & Contract Litigation Group or call toll free 24 hours a day at (866) 920-0753.

What is the problem?

The luxury real-estate developer and investment firm, Woodbridge Group of Companies LLC, has filed for Chapter 11 bankruptcy and its Chief Executive Officer, Robert Shapiro, has resigned amid a government investigation into fraud linked to $1 billion in investments.

Woodbridge Group Files for Bankruptcy

In December 2017, Woodbridge Group filed for bankruptcy as part of a process “intended to restructure its approximately $750 million in debt.” Unfortunately, that means thousands of individual investors — including many physicians in Southern California — could lose hundreds of millions of dollars as part of the Chapter 11 bankruptcy.

CEO Robert Shapiro Resigns

Robert Shapiro, the president and chief executive officer of Woodbridge, has resigned from the company. However, he will receive a monthly fee of $175,000 for a “consulting role” paid from WFS Holding Co., another entity that he controls.

SEC Investigates Securities Fraud

Robert Shapiro and Woodbridge raised approximately $1 billion from investors. The Securities and Exchange Commission (SEC) has been investigating whether Woodbridge “operated a fraud on its investors” since 2016. According to an SEC filing on October 31:

“Woodbridge has represented to investors that bona-fide third parties are borrowing money and repaying interest at a high rate, of which the investors in Woodbridge funds get a portion thereof. … However, evidence obtained in our investigation reveals that many, if not all, of these LLCs may be Woodbridge affiliates with Shapiro as their manager.”

In August 2017, the SEC filed subpoenas with 235 LLCs — limited liability companies — that the Commission believed were owned or controlled by Robert Shapiro. After receiving an inadequate response, the Commission requested a federal order to force compliance.

In its Chapter 11 filing in U.S. Bankruptcy Court in Delaware, Woodbridge cited “unforeseen costs associated with ongoing litigation and regulatory compliance.”

The bankruptcy was filed in the U.S. Bankruptcy Court, District of Delaware (Wilmington) — In RE: Woodbridge Group of Companies LLCCase No. 17-12560.

What You Can Do & How We Can Help

If you were an investor in these related real estate investment companies, you are entitled to immediate relief by filing a claim in the bankruptcy proceedings. Time is limited and it is important you speak with an attorney immediately. You should contact our lawyers immediately for a free case consultation. Please use the form below to contact our Business & Contract Litigation Group or call toll free 24 hours a day at (866) 920-0753.

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The Schmidt Firm, PLLC has been recognized as one of the nation’s leading plaintiffs’ law firms and handles cases in all 50 states. We are very proud of our legal achievements, but equally self-respecting of our firm’s reputation for providing personal attention to each and every client we represent.

No matter what type of case you have, you may contact us with confidence by filling out the email contact form below or calling us directly by dialing toll free 24 hrs/day (866) 920-0753.

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