Update on Woodbridge Group Investigation – Securities Fraud Investigation

Woodbridge Group of Companies filed for Chapter 11 bankruptcy on Monday, citing costs of expansion, litigation and a government fraud investigation, according to a press announcement.

The U.S. Securities and Exchange Commission has been investigating Woodbridge Group since 2016 for possible fraudulent sales of securities, according to court documents.

The company said it would fully cooperate with regulators.

Woodbridge Group is a privately owned company based in Sherman Oaks, CA. The company has raised nearly $1 billion from about 11,000 investors, according to documents filed in the U.S. Bankruptcy Court in Delaware.

Woodbridge, which calls itself a leading developer of high-end real estate, said it planned to use Chapter 11 to restructure $750 million in debt and already obtained a commitment for up to $100 million in debtor-in-possession financing.

Investigating Potential claims involving Woodbridge

The White Law Group is investigating potential claims involving broker-dealers who may have unsuitably recommended the following Woodbridge offerings:

Woodbridge Mortgage Investment Fund I
Woodbridge Mortgage Investment Fund II
Woodbridge Mortgage Investment Fund III

Woodbridge Mortgage Investment Fund I is a private placement investment. Generally speaking, private placements are not subject to some of the laws and regulations that are designed to protect investors.  Private and public companies engage in private placements to raise funds from investors.

Are Private Placement investments suitable for you?

Private Placement investments such as Woodbridge Group’s offerings should only be sold to high net worth, knowledgeable investors.

Your broker has a duty to conduct a reasonable investigation to make sure it is suitable for you. They must consider your age, financial situation, current and future needs, investment objectives and tax status.

If your broker recommended Woodbridge Mortgage Investment Fund I and fails to satisfy its duties, this could constitute a violation of the antifraud provisions as well as other federal securities laws.

Have you suffered losses investing in Woodbridge Mortgage Investment Fund I or another Woodbridge investment, at the recommendation of your advisor? If so, the securities attorneys at The White Law Group may be able to help you.

Investors can file an arbitration claim or request mediation through The Financial Industry Regulatory Authority (FINRA)  when they have a dispute involving the business activities of a brokerage firm or one if its brokers.

FINRA operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. The firm represents investors throughout the country in claims against their brokerage firm.

For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.