Woodbridge Wealth Files Chapter 11 Bankruptcy

[HealthGuy]

Dix86. There were plenty of distributors of this product that offered it without turning a blind eye to anything. The warning signs were shoved under the table by Woodbridge legal. Woodbridge repeatedly said that some states were over regulating the product, and continued to the end saying that this was NOT a security. There were a lot of innocent people offering this product that were told repeatedly by Woodbridge legal that nothing illegal or shady was going on.

 

[Dix86]

I'm sorry Healthguy but I disagree. Just because a company says what they are doing is legal doesn't make it so, nor does it make it safe. The biggest question I asked was who regulates your product? The answer was no one? So that left, in my mind, the question, what happens if woodbridge is unable to pay back on their liabilities? Who will step in if real estate prices plummet? Anyone who was selling these and didn't ask these questions was reckless at best and definitely not innocent.

 

[scagnt83]

Ignorance is bliss. The signs were there for anyone who was not blinded by the flash.

To trust some non-regulated company that their FINANCIAL PRODUCT is legal and does not require state or federal regulation... is just plain ignorant.... like majorly naive.

 

[pfg1]

Ignorance is bliss. The signs were there for anyone who was not blinded by the flash.

To trust some non-regulated company that their FINANCIAL PRODUCT is legal and does not require state or federal regulation... is just plain ignorant.... like majorly naive.

Exactly. Its the same old song and dance on deals like these, just someone different singing and dancing - but the song is usually the same.

 

[LonScott]

The Alleged $1.2 Billion Ponzi Scheme Sapping L.A.'s Trophy-Home Market

It is not about the actual fraud, more about the LA RE Woodbridge bought so it is a waste of time. I thought it would be about the fraud, how it was done and what the investors can expect to get when it comes out of BK. That should be the real story.

The court case is up to 653 Dockets. You can read some it at the link below. I suspect investors will get 50 cents on the dollar as expenses eats up funds as shown on dockets 648 and 649. And there is no SIPC insurance like there was for Madoff victims.

Woodbridge Group of Companies, LLC

 

[DHK]

Madoff victims had no SIPC insurance. SIPC applies to broker/dealers, not RIA firms that Madoff ran.

Securities Investor Protection Corporation - Wikipedia

 

[LonScott]

Sorry but I should have said some Madoff victims did get SIPC insurance payouts. That is why payment into SIPC have gone up since the scandal.

"As of September 3, 2010, a total of $722,970,275.94 of Securities Investor Protection Corporation (SIPC) funds have been committed in determination letters sent to 2212 claimants in the Securities Investor Protection Act (SIPA) liquidation proceeding. As of September 3, 2010, a total of 13,331 customer claims have been filed in connection with 3,565 customer accounts at BLMIS. Many of the rejected claims were due to the fact that they were from customers of feeder funds and not direct BLMIS customers, also numerous duplicate claims were rejected.[96]" Recovery of funds from the Madoff investment scandal - Wikipedia

And: In the Bernard L. Madoff Investment Securities LLC (BLMIS) liquidation, the Securities Investor Protection Corporation (SIPC) has made cash advances – up to a maximum of $500,000 per allowed claim – available to the court-appointed Securities Investor Protection Act (SIPA) Trustee to distribute to eligible customers, as a way to expedite financial relief to these customers. As of February 22, 2018, SIPC has committed approximately $844.3 million to the BLMIS liquidation for this purpose. SIPC-committed advances will continue to increase as claims that are currently in litigation are allowed as a result of settlements or the conclusion of litigation.

According to the provisions of SIPA, SIPC is reimbursed for its advances to customers once each respective customer claim is fully satisfied. As of the ninth pro rata interim distribution in the BLMIS liquidation proceeding, SIPC received $205 million in reimbursement from the Customer Fund for advances paid on fully satisfied accounts.

Bernard L. Madoff Investment Securities LLC Liquidation Proceeding

Can we concentrate on Woodbridge?

Madoff victims had no SIPC insurance. SIPC applies to broker/dealers, not RIA firms that Madoff ran.

Securities Investor Protection Corporation - Wikipedia

 

[DHK]

CEO in Woodbridge Ponzi scheme fined $120 million by SEC

CEO in Woodbridge Ponzi scheme fined $120 million by SEC

Robert Shapiro, the former chief executive officer of Woodbridge Group of Companies, agreed to pay $120 million to the Securities and Exchange Commission to settle allegations he defrauded investors in a $1.2 billion real estate Ponzi scheme that drove his company into bankruptcy, according to court papers. Mr. Shapiro didn't admit or deny the allegations.

[...]

Woodbridge, which has been working its way through Delaware bankruptcy court, received approval Oct. 29 to go forward with the liquidation plan for its remaining assets. The bankruptcy court found sufficient evidence to show that the debtors operated as a Ponzi scheme and the proposed settlements are fair and in the best interests of the various creditor groups. The settlement is subject to District Court approval.

No jail or prison time??? I find that odd.

 

[JJ2713]

What happens to the brokers who pitched this? I heard several radio infomercials pitching this like a year ago. I knew it wasn't legit and was concerned for the investors who bought in.

 

[HealthGuy]

JJ2713 how did you read the tea leaves on this and know it wasn't legit and all the brokers who pitched it missed it? What makes you so special?