Robert Shapiro

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

December 4, 2017 | Silver Law Group

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.

Woodbridge Wealth’s Potential Fraud

December 4, 2017 | Silver Law Group

SEC regulations are intended to provide investors with a framework of full disclosure of risks and anti-fraud provisions. That said, there are still investment schemes that are not following the protective measures as set out by the SEC.

For this reason, it is important to carefully consider what company you will be investing with and verify the reputation of that company before moving forward with signing the contracts. From time to time there are companies that the SEC scrutinizes to ensure that they are in fact complying with its regulations regarding the trading of securities.

Woodbridge Wealth is currently one of those companies in which the SEC is investigating.

What the SEC Says About Woodbridge Wealth

December 4, 2017 | Silver Law Group

The SEC handles the protection of fostering transparent and competitive markets that are financially sound. In order to achieve this, the SEC issues regular fraud warnings regarding certain types of financial instruments in order to protect consumers and brokers. The SEC’s recommendations can be used as a useful tool to protect both your present and future investment opportunities.

The SEC recommends caution when it comes to the trading of unregulated securities, particularly when they are presented to consumers in the form of mortgages that promise a high yield of returns.

One such firm that is undergoing an investigation by the SEC is Woodbridge Wealth. Investors that have invested with any of their affiliates should review their investment agreements and get a second opinion by an experienced securities attorney.

Woodbridge Wealth and Woodbridge Group of Companies SEC Investigation

December 4, 2017 | Silver Law Group

Within the United States there has been a severe crack down on the trading of securities since the sub-prime mortgage crisis in 2008. The reason for this is that there was far too little regulation on how securities are traded and whether investors were receiving full disclosure on the nature and risks of what they were investing in.

In recent years, the Securities and Exchange Commission (SEC) has instituted reforms in cooperation with many government agencies with the objectives of making a unified and fair market within the United States that protects American consumers.

While this market has improved substantially since 2008, there are still instances where companies are investigated by the SEC in order to ascertain whether they are in fact complying with SEC regulations.

Woodbridge Wealth is Not Registered with the SEC or FINRA

November 28, 2017 | Silver Law Group

Woodbridge Wealth promotes itself as a division of Woodbridge Group of Companies and advertises as a company with a focus on “wealth creation” claiming “Woodbridge Wealth is among the most innovative financial companies in the U.S. From its base in Sherman Oaks, California, it helps countless clients realize strong returns with lower-risk products without the burden of long-term commitments.”

The promise of lower-risk investments with strong returns has helped Woodbridge Wealth and its related companies raise over $1 billion from investors nationwide. However, recent SEC filings and other state action have raised concerns that Woodbridge Wealth may have violated the federal securities laws by selling unregistered securities or violating the anti-fraud provisions of the federal securities laws.

SEC Filings Concerning Woodbridge Wealth

Woodbridge Group of Companies Principal Robert Shapiro Takes the 5th Amendment

November 28, 2017 | Silver Law Group

Robert Shapiro, president and CEO of Woodbridge Group of Companies (“Woodbridge”), has reportedly refused to answer questions from the Securities and Exchange Commission (“SEC”) relating to its investigation of Woodbridge’s business practices.

In a letter to the SEC, filed in federal court papers, Mr. Shapiro’s lawyer writes, “Upon consideration of the SEC’s investigative subpoenas and a review with counsel of the individual rights afforded by the United States Constitution, Mr. Shapiro will rely on his constitutional privilege to refuse to be a witness against himself.”

This disclosure occurs on the heels of a related SEC action against Woodbridge for the production of documents including e-mails and corporate documents relating to dozens of companies. According to the SEC, Woodbridge has raised over $1 billion from thousands of investors nationwide and is now under investigation for possible violations of the securities laws including anti-fraud violations.

Woodbridge Group of Companies Under SEC Investigation

November 28, 2017 | Silver Law Group

The SEC is investigating Woodbridge Group of Companies’ (“Woodbridge”) business practices.

According to a recent SEC application and supporting papers filed in federal court in Miami, Florida, the SEC is investigating whether Woodbridge and others have violated or are violating the antifraud, broker-dealer, or securities registration provisions of the federal securities laws in connection with Woodbridge’s receipt of more than $1 billion of investor funds from thousands of investors nationwide.

As part of the SEC’s ongoing investigation, on January 31, 2017, agency staff in the SEC’s Miami Regional Office served Woodbridge with a subpoena seeking, among other documents, the production of electronic communications that the company maintained relating to Woodbridge’s business operations. The SEC’s application alleges that although Woodbridge was required to produce these documents to the SEC, Woodbridge has failed to produce relevant communications in response to the subpoena, including those of three high-level Woodbridge officials.

Woodbridge Group of Companies’s CEO and President Robert Shapiro Pleads the Fifth in SEC Investigation Over $1 Billion Fraud

November 22, 2017 | Silver Law Group

CEO and President of Woodbridge Group of Companies (“Woodbridge Group”) Robert Shapiro is allegedly invoking his Fifth Amendment right to remain silent after the SEC has made repeated requests for documents from him and Woodbridge Group.

The SEC’s Subpoena for Documents Against Woodbridge Group

The SEC first launched an investigation into Woodbridge Group in November 2016. The SEC was looking into the “offer and sale of unregistered securities, the sale of securities by unregistered brokers and the commission of fraud in connection with the offer, purchases and sale of securities.”