The Woodbridge Group of Companies, LLC, filed for bankruptcy in December, shortly before the Securities and Exchange Commission filed a lawsuit alleging the company ran a billion-dollar Ponzi scheme.
Other lawsuits followed, and this month, there have been news reports about developments in the bankruptcy proceeding, the SEC lawsuit, and other actions involving the company – a company that perhaps was perhaps best known for real estate investments but whose businesses also included structured settlement factoring companies Woodbridge Structured Funding, Ash Square Funding, LLC, and Blazingstar Funding, LLC.
Among the news stores appearing this month are the following:
- Woodbridge Settles SEC Claims In $1.2B Investment Scheme, in Law360 (here), reporting that the Securities and Exchange Commission “has agreed to settle allegations against a slew of unregistered Florida-based funds called the Woodbridge Group of Cos. LLC, which the agency claimed were used in an alleged $1.2 billion scheme that duped more than 8,400 investors” and that a U.S. District Court judge issued an injunction against further SEC violations and said she will later reach a decision on disgorgement and civil penalties.
- Sanctioned Ponzi Scheme Salesmen Keep Shilling Planning Advice, in Investment News (here ) discusses actions by state insurance regulators in Colorado and Florida.
- Bankrupt Developer Gets Court Approval Of Agreement With SEC, (here), from Reuters, says that Woodbridge obtained bankruptcy court approval for the agreement with the SEC.
- A Private Market Deal Gone Bad: Sketchy Brokers, Bilked Seniors and a Cosmetologist (here) appearing May 7 in the Wall Street Journal, described the SEC allegations that the company was a “business model built on lies” to keep it “afloat, Ponzi-life, only by the constant infusion of new money from investors, the SEC said in labeling the business a “massive Ponzi scheme.”
That’s just a sampling of the news stories about the many developments involving this secondary market company.