Woodbridge Wealth Files Chapter 11 Bankruptcy

[DHK]

A "relatively safe private loan offering" is still subject to a disgruntled client to sue the salesperson who sold it to them. Whether they would be subject to ponzi scheme charges... is a different story. I'm certainly not qualified to answer that question.

None of this makes any sense to me. You have multiple on staff attorneys potentially going to prison then. Who would want to lose their law license over a Ponzi scheme? Really ?

Arthur Andersen - Wikipedia

In 2002, the firm voluntarily surrendered its licenses to practice as Certified Public Accountants in the United States after being found guilty of criminal charges relating to the firm's handling of the auditing of Enron, an energy corporation based in Texas, which had filed for bankruptcy in 2001.[1] However, in 2005, the Supreme Court of the United States unanimously reversed Andersen's conviction due to what it saw as serious flaws in the jury instructions.

Why would people lose their licenses just to handle auditing incorrectly? Were they paid off? I don't know. But people who are licensed should be (note that term "should be") moral people who should be trusted.

This is why licensing and regulations exist. Licensing so that we know that these people can be held accountable and regulations to have people holding licensees accountable for their actions.

 

[DHK]

Even companies who invested with Madoff weren't immune to scandal or lawsuit:
MassMutual Distances Itself from Madoff Hedge Fund Losses

 

[DHK]

If you don't know who Bill Singer is, he's an attorney that frequently represents registered reps, broker/dealers, and RIAs.

This link is for all his blog postings regarding Ponzi Schemes:
BrokeAndBroker.com by Bill Singer, 917-520-2836 » Past Entries

Here are the three latest ones:
Supervisor Fined, Suspended, and Barred In Ponzi Fiasco - BrokeAndBroker.com by Bill Singer, 917-520-2836

SEC Moves Quickly Against Alleged Farm Loan Ponzi - BrokeAndBroker.com by Bill Singer, 917-520-2836

$4.6 Million Elderly Ponzi Shell Game Ends With SEC Settlement - BrokeAndBroker.com by Bill Singer, 917-520-2836

 

[VolAgent]

DHK: Woodbridge didnt have anyone 'on staff' boiler room employees selling their Ponzi scheme. There were numerous independent marketing agencies offering this, both securities and non securities licensed agencies. The agencies, from afar, were told from Woodbridge legal what Woodbridge was offering - a relatively 'safe' private loan offering, whether it was accurate or not. None of this makes any sense to me. You have multiple on staff attorneys potentially going to prison then. Who would want to lose their law license over a Ponzi scheme? Really ?

I suspect the worst that will happen to any of the attorneys will be a slap on the wrist from their state bar.

To go to jail, they would either need to have been a participant in the crime or had sufficient knowledge that a crime was being committed. Remember, in a Ponzi scheme only a few are truly active participants. Madoff had a large firm, but it appears only a dozen or two were actively participating in the fraud.

It is possible one or two more senior attorneys who actively assisted and had knowledge may go to jail and/or lose their license. For the rest, I suspect a suspension from the bar and a very hard time finding work.

 

[HealthGuy]

The Woodbridge attorneys kept defending their practices, even after multiple state investigations, repeating that they weren't offering a 'security' and if a single state had an issue with their offering they would merely close up shop in that state, and allow their operations to proceed in all the other states. Their legal dialog was that states like MA were hyper regulatory and there was no need to operate in any states such as those if they had a problem with their business model.

I have a hard time believing anyone would knowingly go to jail for this and lose their law licenses knowingly defending and hiding a Ponzi scheme. I just don't believe it.

 

[JFBAgent]

I have a hard time believing anyone would knowingly go to jail for this and lose their law licenses knowingly defending and hiding a Ponzi scheme. I just don't believe it.

While I agree with you completely that it doesn’t make sense, I suspect there are many who don’t share your values. Increasingly, we read about agents, brokers, attorneys, and CPA’s who destroy what could have been a great career and living for a short term fix. Studying the news on this is really pretty fascinating; how and why educated people with so much already going for them choose instant gratification. They forge signatures, steal money, and lie to everyone; often for very small amounts of money. Could they be rationalizing the irrational each new time by telling themselves this is the time no one will find out?

 

[HealthGuy]

JFB...What values..Im not defending anything, I'm trying to understand what happened here...This wasnt small change and there was no forging of anything.. Woodbridge collected nearly a billion dollars from about 9,000 people into bridge loans from independent marketing companies. There may have been negligence or criminal intent at the top, but down the line, nobody knew there was anything illegal going on (including the currently employed office staff). Guys, if this was a ponzi scheme, and that has yet to be proven, it sure was one helluva one.

 

[DHK]

We'll find out over time.

As far as the slippery slope, all it takes is the smallest compromise, then another and another. A person doesn't wake up and ask themselves "Should I go rob a bank, or go feed the homeless?" No, it's a small decision repeated and goes deeper down the rabbit hole.

If you read some of those blog entries on www.rrbdlaw.com, some of them are small things, and others a big deals. The key is constant vigilance to uphold one's values and standards.

This can affect everyone - including and especially those who are in a position of trust.

 

[pfg1]

JFB...What values..Im not defending anything, I'm trying to understand what happened here...This wasnt small change and there was no forging of anything.. Woodbridge collected nearly a billion dollars from about 9,000 people into bridge loans from independent marketing companies. There may have been negligence or criminal intent at the top, but down the line, nobody knew there was anything illegal going on (including the currently employed office staff). Guys, if this was a ponzi scheme, and that has yet to be proven, it sure was one helluva one.

The thing is... in almost every instance, what you mentioned is exactly how it goes down. Nobody knew, everyone is defending the company and its operation. (Not you -- people involved or close to it). Not saying it is a ponzi, but wouldn't surprise me at all. Its not really much different than most (in how it sounds)

I've seen this happen to people I knew...got involved in things that just weren't quite 100% above board. Eventually crashed and burned, and usually takes all the people with it.

The other thing, if its actually deemed a "ponzi" by the regulators, then any money earned can be gone after - because it was deemed to be earned illegally. This includes agents commissions, employees pay, and even clients who profited from the deal. They will come after it.

 

[Dix86]

Wow, I missed a lot after I started this thread. In my opinion, the head legal staff there knew exactly what was going on. I had correspondence with them in August of 2017 after receiving a nasty cease and desist letter. I had been actively talking against people investing in woodbridge for some time and made some very specific points. The letter addresses those points, such as being unregulated by any agency, and threatened law suit against me if I continued. I did continue and nothing ever came of it. I was sure that I was right and was ultimately proven to be. Anyone who chose to sell this product willingly turned a blind eye because the warning signs were everywhere.