Woodbridge Group Called $1.2 Billion Ponzi Scheme by SEC

Stoltmann Law Offices continues to investigate the Woodbridge Group of Companies, a southern California real estate and investment company that allegedly and fraudulently raised over $1 billion from investors. The Securities and Exchange Commission (SEC) on Thursday accused Robert Shapiro, its Florida-based fund owner of running a $1.2 billion ponzi scheme that lasted the better part of five years. Shapiro, the company’s president, is being accused of defrauding more than 8,400 investors out of $1.2 billion. The SEC was “investigating the offer and sale of unregistered securities, the sale of securities by unregistered brokers and the commission of fraud in connection with the offer, purchase and sale of securities.” According to Woodbridge’s website, the group, Woodbridge Wealth, sells three types of investments: first position commercial mortgages with an annual yield of 5%, secondary market annuities with above average, risk adjusted yields, and a commercial bridge loan fund that potentially returns 6%. According to the Financial Industry Regulatory Authority (FINRA) website, BrokerCheck, there is no broker-dealer named Woodbridge Wealth.