HOUSTON, Dec. 8, 2017 /PRNewswire/ -- Lawyers with the Securities Law Firm of SHEPHERD SMITH EDWARDS & KANTAS LLP, www.sseklaw.com ("SSEK") are investigating claims for investors involving the Woodbridge Group of Companies, LLC ("Woodbridge"), a luxury real estate developer based in Sherman Oaks, California.
Recently, Company CEO, Robert Shapiro, resigned and the company filed chapter 11 bankruptcy, meaning Woodbridge investors will likely lose large sums.
Woodbridge created numerous investment companies, including:
- WMF Management, LLC;
- Woodbridge Group of Companies, LLC;
- Woodbridge Mortgage Investment Fund 1, LLC;
- Woodbridge Mortgage Investment Fund 2, LLC;
- Woodbridge Mortgage Investment Fund 3, LLC;
- Woodbridge Mortgage Investment Fund PA, LLC; and
- Woodbridge Wealth
These, and other companies, were used to raise over $1 billion in funds from investors.
Woodbridge has been under investigation and regulatory scrutiny for years. As far back as May 2015, the state of Massachusetts issued a permanent bar on Woodbridge's entities from selling securities. Similarly, the Texas State Securities Board issued a cease and desist order against various Woodbridge entities and individuals, prohibiting them from continuing their business practices in Texas. Arizona regulators similarly acted to shut down Woodbridge in that state. More states may already be in the process of taking similar steps. The Securities and Exchange Commission ("SEC") originally started their fraud investigation into Woodbridge in 2016 and continue its fraud investigation.
There also appear to be many brokerage firms and investment companies involved in selling these Woodbridge securities. Public filings show that William Holliday, registered with the advisory firm AIO Financial, LLC sold Woodbridge securities. Frank Capuano, a former registered representative of Royal Alliance Associates, Inc. sold more than $1 million in Woodbridge investment products. Similarly, Elizabeth Haskell, working under Iron Will Advisory Group, sold Woodbridge securities in Pennsylvania.
While it is currently unclear the extent of the damage that Woodbridge investors may suffer, it has become increasingly apparent that the problems are both wide-spread and devastating for those who invested in Woodbridge and its many affiliated companies. Although Woodbridge raised over $1 billion from investors, the bankruptcy filings indicate Woodbridge has far less than that in assets. Woodbridge promissory notes are also currently in default of payments due.
If you are or were an investor in Woodbridge, please contact the law firm of Shepherd, Smith, Edwards & Kantas LLP. All communications will be kept strictly confidential, and you will not be billed in any way for this communication.
Shepherd Smith Edwards & Kantas LLP has a team of attorneys, consultants and staff with more than 100 years of combined experience in the securities industry and in securities law. For more than two decades, our firm has represented thousands of investors across the nation to recover losses.
SOURCE Shepherd Smith Edwards & Kantas LLP