SEC Requests Judge to Appoint Trustee to Woodbridge Group.
The White Law Group continues to investigate potential claims involving broker dealers who may have unsuitably recommended Woodbridge Group offerings to investors.
According to the U.S. Securities and Exchange Commission, the regulator urged a federal judge on Wednesday to appoint a trustee to manage the Woodbridge Group of Companies. The SEC recently accused the bankrupt property developer of being a $1.2 billion Ponzi scheme.
As we recently told you, the SEC sued to freeze its assets, accusing it of selling unregistered securities to raise funds to repay earlier investors, not long after Woodbridge filed for bankruptcy protection.
The SEC alleges that Woodbridge Group investors are owed more than $961 million, and has further alleged the company’s owner, Robert Shapiro, used at least $21 million for private jets, luxury cars, wine and political donations. Shapiro has denied the allegations.
Larry Perkins, who was hired as a chief restructuring officer in October, said the company is investigating the allegations.
At the U.S. Bankruptcy Court hearing in Wilmington, Delaware, the SEC and an official creditors committee were requesting an independent trustee, while the company and lawyers for some investors argued keeping Perkins as the restructuring officer.
The hearing was continued until Jan. 18, 2018.
Woodbridge raised about $1.2 billion from 8,400 investors, beginning in 2012. Many of the investors were senior citizens. The securities reportedly promised interest of up to 8 percent, according to the SEC’s complaint.
Woodbridge went under the radar by distributing its securities through insurance agents and unregistered investment advisers who were earning large commissions, according to the SEC. The company also reportedly sold securities through seminars and television advertising.
Recovery of Investment Losses
The White Law Group is investigating potential claims involving the following Woodbridge Group offerings, among others:
Woodbridge Mortgage Investment Fund I
Woodbridge Mortgage Investment Fund II
Woodbridge Mortgage Investment Fund III
Have you suffered losses investing with the Woodbridge Group? If so, the securities attorneys at The White Law Group may be able to help you recover your losses. Please contact The White Law Group at 1-888-637-5510 for a free consultation.
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. For more information on the firm, visit www.WhiteSecuritiesLaw.com.