It is alleged up to 8,400 retail investors were defrauded by Boca Raton-based Woodbridge, which filed for bankruptcy in 2017. You have to know whats happening with clients, competitors, practice areas, and industries. Fax Line: (305) 530-7679. The scheme ran from at least July 2012 to December 2017, when Woodbridge filed for Chapter 11 bankruptcy and defaulted on its obligations to investors. 'The settlement provides for the return of significant funds to investors.'. The Trust entered into a resolution agreement with the DOJ which provided that the Trust would receive the assets forfeited by Robert and Jeri Shapiro (the "Forfeited Assets"). The SEC complaint alleges that Woodbridge and Shapiro's network of both in-house and external agents falsely sold Woodbridge investments as "low risk," "simpler," "safe," and "secure," employing misleading marketing materials that falsely portrayed the nature of Woodbridge, when in fact Shapiro was actively making Ponzi payments to investors, paying significant sales commissions to unregistered sales agents in exchange for selling Woodbridge to the public, and misappropriating investor funds for his own personal use. Michael Goldberg, Liquidation Trustee RS Protection Trust. A federal judge has now ordered them cough up $1 billion in payments and fines after the SEC in 2017 filed an emergency court action. Shapiro, Roseman, and Acevedo falsely claimed that Woodbridge was profitable and advertised high rates of return to investors. The comments below have not been moderated. Amended HEARING CANCELLED. A .gov website belongs to an official government organization in the United States. (Attachments: # (1) Notice # (2) Exhibit A # (3) Certificate of Service and Service List) (Robinson, Colin), Request for Entry of Default Solely as to Defendant Schwartz Media Buying Company, LLC Filed by Woodbridge Liquidation Trust. A Florida businessman and his former company must pay $1billion for swindling 8,400 people, including ABC anchorGeorge Stephanopoulos, to fund his luxury, celerity studded lifestyle. (Attachments: # (1) Exhibit A # (2) Affidavit of Counsel in Support # (3) Exhibit 1 to Affidavit of Counsel # (4) Certificate of Service) (Robinson, Colin). On July 12, 2021, Los Angeles County, California natives, Dane Roseman, 38, and Ivan Acevedo, 44, pled guilty to participating in a massive investment fraud scheme, in which more than 7,000 victims suffered financial losses, in violation of 18 U.S.C. Shapiro at times would utilize another LLCShapiro Property LLCto mask his misconduct, and issue notes from Shapiro Property LLC, with an interest rate of zero, to Woodbridge. Submitting a contact form, sending a text message, making a phone call, or leaving a voicemail does not create an attorney-client relationship. Former Woodbridge Group of Cos. president and CEO Robert Shapiro has reached a settlement deal with the Securities and Exchange Commission by agreeing to pay more than $120 million . Wilmington DE 19801 Robert H. Shapiro, 62, defrauded . Have a question about Government Services? [Bloomberg] Natalie Hoberman. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 19-cr-20178. Roseman started working for Woodbridge as a sales agent in or around August 2012. Try our Advanced Search for more refined results. The court ordered Shapiro, accused of using a web of shell companies to conceal the scheme, to pay a $100 million civil penalty and to disgorge $18.5 million in ill-gotten gains plus $2.1 million in prejudgment interest. Hosted by Woodbridge Realty of Colorado for the second consecutive year, 250 revelers and party-hounds danced into the wee small hours of 2016 to the music of Grammy Wife Jeri, left, pictured here with TV judgeJeanine Pirro in 2016, Shapiro is said to have enjoyed a luxury lifestyle of chartered planes, country-club fees, Porsche cars and jewelry and even played gold with actor Scott Baio. (U.S. Treasury), Adversary case 19-51076. The Honorable Judge Marcia G. Cooke of the U.S. District Court for the Southern District of Florida approved judgments against . Florida judge orders company to pay $1 BILLION for 'defrauding 8,400 United States Bankruptcy Court Jeri Shapiro, Woodbridge Realty of Colorado, Woodbridge Luxury Homes of California (dba Mercer Vine, Inc), Riverdale Funding, Schwartz Media Buying Company, and WFS Holding Co are listed as relief defendants. District of Delaware Adobe Reader is required to view the PDFs. Official websites use .gov (Robinson, Colin), Affidavit/Declaration of Service re: Entry of Default. Farm Heroes Saga, the #4 Game on iTunes. Do not sell or share my personal information. Shapiro would promise investors high returns on their investments, specifically luxury spec homes, only to then channel their money into several different entities he controlled. FB Court Docket Relief defendants Jeri Shapiro (Shapiro's wife), Woodbridge Realty of Colorado, LLC d/b/a Woodbridge Realty Unlimited CtWoodbridge Realty''), Woodbridge Luxury Homes of California, Inc. d/b/a Mercer Vine, lnc. . PLEASE NOTE: A verification email will be sent to your address before you can access your trial. The agreement will also . hb```),@(qYPa i cP %~Vz(5=::$`h Blb9@s@4%#7#C$Ccc2-5D:7400.;]I" k, woodbridge mortgage commercial bridge loan fund 2, llc, 144 woodbridge-affiliated property limited liability companies, 131 woodbridge-affiliated holding limited liability companies, defendants, and jeri shapiro, woodbridge realty of colorado, llc, d/b/a woodbridge realty unlimited, woodbridge luxury homes of california, inc., And the husband and wife were even thought to have played golf with Happy Days actor Scott Baio, who called them a 'great couple' in the same year. Notice of Agenda of Matters not going forward. Shapiro was the nominee owner of several closely-held companies that received tens of millions of dollars at the direction of her husband, who ultimately pled guilty and was sentenced to 25 years in prison. SEC Charges Calif. Businessman In $1.2B Ponzi Scheme In fact, you dont even need to live here as we have it all covered. Securities and Exchange Commission v. Shapiro et al, 1:17-cv-24624 (S.D Ponzi Fraud Lawyers In March 2021, the Trust received certain Forfeited Assets from the . Jeri was pictured with her friend and TV judge Jeanine Pirro in 2016. right. The SEC complaint alleges that Shapiro and Woodbridge used investors' money to pay other investors, and paid $64.5 million in commissions to sales agents who pitched the investments as "low risk" and "conservative." . She was pictured with her friend and TV judge Jeanine Pirro in 2016. It is similar to a pyramid scheme in that both are based on using new investors' funds to pay the earlier backers. ', ABC news anchor George Stephanopoulos is said to be one of those fleeced by the scheme, The headquarters of the Woodbridge Group of Companies in Sherman Oaks, California. . Ushering in the New Year in Style Thanks to the kind generosity of Bob and Jeri Shapiro, New Year's Eve 2015 at Aspen Glen will remain a night to remember! %PDF-1.7 % Woodbridge CEO Robert Shapiro sentenced to 25 years in Ponzi scheme. <>stream Between 2015 and 2017 he served as the sales manager of Woodbridge. Robert Shapiro, an alleged mastermind behind a $1.2 billion Ponzi scheme, has agreed to pay $120 million to the Securities and Exchange Commission as part of a settlement agreement. Main Office: endstream endobj startxref He did not admit nor deny the allegations. This resolution accomplishes one of the SEC's core missions to protect retail investors,' said Stephanie Avakian, Co-Director of the SEC's Division of Enforcement. A federal court has ordered the Woodbridge Group of Companies and its former CEO and owner Robert H. Shapiro to pay $1B in disgorgement and penalties for allegedly running a $1.2B Ponzi scam that victimized 8,400 retail investors, including many senior investors who ended up losing their retirement money.Of this $1B, Woodbridge and its 281 related companies must pay $892M in disgorgement. The defendant allegedly promised investors 5-10% in interest yearly. According to the SEC's complaint, Shapiro fraudulently used money from newer investors to pay returns owed to existing investors all while the Shapiro family lived in luxury, spending investor money on luxury automobiles, jewelry, country club membership, and chartering private planes. Prior to SEC involvement, states had already begun to uncover the true fraudulent nature of Robert H Shapiro's Woodbridge Group of Companies. (310) 203-4271, Reports and Letters by the Liquidation Trustee, Change Of Name or Address/Registration Of Transfers, Woodbridge Liquidation Trust - 2022 Grantor Letter, PRESS RELEASE - Woodbridge Liquidation Trust Announces Cash Distribution, PRESS RELEASE -Woodbridge Liquidation Trust Announces Cash Distribution, Important Information Regarding the 2021 Grantor Letters for the Woodbridge Liquidation Trust, Notice of Proposed Comerica Class Action Settlement, Notice Concerning Roseman and Acevedo Criminal Case, NOTICE CONCERNING THE JANUARY 27, 2021 DISTRIBUTION, NOTICE TO HOLDERS OF INTERESTS IN THE WOODBRIDGE LIQUIDATION TRUST - Important Information Regarding Your 2020 Income Tax Returns, PRESS RELEASE - Woodbridge Liquidation Trust Urges Its Holders to Safeguard Against Unauthorized E-Mails, Notice to Woodbridge Liquidation Trust Beneficiaries regarding 2019 Grantor Letter, IMPORTANT UPDATE REGARDING YOUR 2019 INCOME TAX RETURNS, PRESS RELEASE - Woodbridge Liquidation Trust Announces DTC Eligibility of Class A Liquidation Trust Interests, PRESS RELEASE - Woodbridge Liquidation Trust Announces Trading Symbol and Intent to Apply to Depository Trust Company for Direct Registration System Services, Notice to Trust Beneficiaries - Important Information Regarding Your 2019 Income Tax Returns, Liquidation Trustees Letter to Holders of Liquidation Trust Interests Regarding Pending Tender Offer by Contrarian Liquidity Option, LLC, Woodbridge Liquidation Trust Announces Cash Distribution, Liquidation Trustees Letter to Holders of Liquidation Trust Interests Regarding Form 10-12G Registration Statement, Recommendation by Liquidation Trustee and Supervisory Board Regarding Contrarian Tender Offer, Liquidation Trustees Letter to Holders of Liquidation Trust Interests Regarding Recommendation on Contrarian Tender Offer, Liquidation Trustee's Letter to Holders of Liquidation Trust Interests regarding Contrarian Funds LLC Tender Offer, Liquidation Trustee's Letter to Holders of Liquidation Trust Interests, Liquidation Trusts Third Quarter Report for the period ending September 30, 2019, Liquidation Trustee's Letter to Beneficiaries regarding the Woodbridge Liquidation Trust Form 10 Registration Statement. The SEC has ordered her to disgorge almost $1.4M and pay nearly $165K of prejudgment interest. The scheme generates returns for older investors by acquiring new investors. Direct or indirect sales of unregistered securities is a violation of industry regulations, meaning a registered broker, financial adviser, or firm who has sold such securities may be liable for damages that result from associated transactions. The Ponzi fraud fell apart after payments to investors stopped and Woodbridge filed for bankruptcy. He thanked the SEC Miami Regional Office and the U.S. Attorneys Office for the Central District of California for their assistance. Former Woodbridge CEO Robert Shapiro agrees to pay $120M in penalties Revelers at Aspen Glen, New Years Eve 2015. Jeri Shapiro, Shapiro's wife, was named as a relief defendant in the suit for her role serving as a vice president at Woodbridge since about 2012, and also for being in possession of real property . Password (at least 8 characters required). We are no longer accepting comments on this article. Pachulski Stang Ziehl & Jones LLP, Counsel to Woodbridge Liquidation Trust Even in the wake of these cease and desist orders, Woodbridge nonetheless continued to sell investment products to residents of the aforementioned states, soliciting approximately $9 million after being instructed to cease and desist, falsely mischaracterizing that the company had been "exonerated of any wrongdoing or fraudulent activity" when no such determination was made. PDF Woodbridge_Structured_Funding_v_Pina_et_al__flsdce-16-81408__0037.1.pdf (Koonin, Russell) December 29, 2017: Filing 47 SUMMONS (Affidavit) Returned Executed on #1 Complaint, with a 21 day response/answer filing deadline by Securities and Exchange Commission. In reality, the SEC says Woodbridge, based in California after it was founded in Boca Raton, made no interest payments and used money from new investors to pay older ones in classic Ponzi scheme fashion. The real estate developer was accused of running a $1.2B massive fraud operation. Complaint For Avoidance and Recovery of Avoidable Transfers, Fraud, Aiding and Abetting Fraud, Unjust Enrichment, Breach of Fiduciary Duty, and the Sale of Unregistered Securities by Woodbridge Liquidation Trust against Robert Shapiro, Jeri Shapiro, 3X A Charm, LLC, Carbondale Basalt Owners, LLC, Davanna Sherman Oaks Owners, LLC, In Trend Staging, LLC, Midland Loop Enterprises, LLC, Schwartz Media Buying Company, LLC, Stover Real Estate Partners, LLC.
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