Woodbridge Group of Companies’, aka Woodbridge Wealth, Declares Bankruptcy

Sherman Oaks, California-based Woodbridge Group of Companies (“Woodbridge Group”) filed for chapter 11 bankruptcy amidst a Securities and Exchange Commission (the “SEC”) investigation. Woodbridge Group cited costs of expansion, litigation and a government fraud investigation as some of the reasons for filing for bankruptcy protection.

According to court papers, Woodbridge Group raised $226 million from over 1,500 investors and owes approximately $750 million to an estimated 8,998 noteholders. In a Woodbridge Group press release, the company stated that the chapter 11 bankruptcy proceeding will be a debt recapitalization.

Woodbridge Group’s bankruptcy filing comes in light of what appears to be a rather contentious SEC investigation that has been going on for over a year. The SEC investigation concerns potential fraudulent sales of securities, according to court documents. The SEC has not brought any formal charges against Woodbridge Group yet.

The SEC’s Subpoena for Documents Against Woodbridge Group and Shapiro’s Decision to Invoke his Fifth Amendment Rights

The SEC first began its investigation into California-based Woodbridge Group in November 2016 for various securities violations. To date, Woodbridge Group and its CEO and founder, Robert Shapiro, have been noncompliant, according to court documents.

The SEC filed for a subpoena to obtain various documents after Woodbridge Group failed to comply with informal requests. When Woodbridge Group and Shapiro failed to comply with the subpoena, the SEC filed an application to enforce the subpoena. Among other things, the SEC sought emails from or concerning Shapiro.

Most recently, Woodbridge filed a response to the SEC’s application to enforce its subpoena citing, among other things, that the company reached out to Shapiro’s attorneys to obtain the emails the SEC sought, to which Shapiro’s attorneys stated that Shapiro would be invoking his Fifth Amendment right to remain silent, which protects Shapiro’s from being forced to incriminate himself.

Silver Law Group News Update: Robert Shapiro Pleads the Fifth

Shapiro’s decision to invoke his Fifth Amendment right to remain silent raises numerous red flags as the SEC’s investigation and Woodbridge Group’s financial woes grow hotter. Shapiro reportedly maintains a residence in Boca Raton, Florida, and Woodbridge Group has sales agents in the South Florida community.

Woodbridge Group’s Family of Funds and Companies

Woodbridge Group operates under the moniker Woodbridge Wealth and Woodbridge Structured Funding, LLC, among other names. The company purportedly sells investments in first position commercial mortgages, commercial bridge loans, and second-market annuities. Woodbridge Group, among other things, alleges that some of its investments can yield up to 6% anually. Woodbridge Group has filed numerous Form Ds, the form required by the SEC in order to sell private placement investments, including but not limited to the following:

Woodbridge Wealth and the other Woodbridge Group companies are not registered with FINRA. The private placement investments may have been sold by various FINRA-registered firms and others holding themselves out as financial advisors, though. If you invested in and of Woodbridge Group’s investments through a brokerage firm or broker, you may be entitled to recover some or all of your losses. Brokerage firms are required to conduct adequate due diligence prior to recommending an investment.

Silver Law Group News Update on SEC Investigation into Robert Shapiro

Contact Our Firm if You’ve Invested with Woodbridge group of Companies, Woodbridge Wealth, and/or Woodbridge Structured Funding

If you have invested with Woodbridge Wealth, Woodbridge Structured Funding, Woodbridge Group of Companies, or any of the listed investments run by Robert Shapiro, contact our firm for a free consultation. Our lawyers are experienced in recovering investor losses due to broker and brokerage firm misconduct, including misconduct related to private placements and broker/brokerage firm fraud. Our attorneys routinely represent investors in FINRA arbitration and state or federal court.

Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345