The U.S. Securities and Exchange Commission recently sued luxury real estate developer Robert Shapiro and his Woodbridge Group of Companies for allegedly operating a $1.2 billion Ponzi scheme targeting thousands of investors. According to the SEC’s complaint, Shapiro ran a “sham” business model that allegedly defrauded more than 8,400 investors, including many elderly, in unregistered Woodbridge funds. It said Shapiro promised 5 to 10 percent annual interest on money he said would be used for loans to commercial property owners paying 11 to 15 percent interest rates. The SEC alleges that investors’ money was used to pay other investors and commissions to sales agents to keep up the Ponzi-style scheme, which collapsed in early December when Woodbridge stopped paying investors and filed for bankruptcy protection.
Did you invest and lose money in this scheme? If so, take action to recover your money. Call us at 310-295-2010 and ask for Jeffrey Wittenberg.