On December 4th, 2017, the Woodbridge Group of Companies LLC, filed for Chapter 11 bankruptcy protection in Delaware. On December 1st, 2017, former CEO and President, Robert Shapiro, resigned. Both he and Woodbridge are being investigated for misconduct. As of December 4th, Woodbridge owed approximately $750 million to an estimated 8,998 noteholders who invested in Woodbridge funds, according to bankruptcy proceeding filings. As of that date, the company received information requests from state securities regulators in 25 states, including Massachusetts, Michigan, Pennsylvania, Texas, Idaho, Arizona and Colorado. Included in Woodbridge’s entities or mortgage funds are:
WMF Management LLC
Woodbridge Group of Companies
Woodbridge Mortgage Investment Fund 1,LLC;
Woodbridge Mortgage Investment Fund 2, LLC;
Woodbridge Mortgage Investment Fund 3, LLC;
Woodbridge Mortgage Investment Fund 3A, LLC;
Woodbridge Mortgage Investment Fund 4, LLC;
Woodbridge Mortgage Investment Fund PA, LLC; and
Woodbridge Group of Companies, LLC (d/b/a Woodbridge Wealth)
Woodbridge has claimed that its assets include a portfolio of 138 properties ranging in value from $50,000-$150,000,000. The properties are in various stages of development or renovation, including some raw land parcels.
The Woodbridge Group of Companies is a southern California real estate and investment company, which has allegedly raised over $1 billion from investors. The Securities and Exchange Commission (SEC) is investigating it to determine whether the company has been operating as a fraud, along with Mr. Shapiro. The SEC is “investigating the offer and sale of unregistered securities, the sale of securities by unregistered brokers and the commission of fraud in connection with the offer, purchase and sale of securities.” According to Woodbridge’s website, the group, Woodbridge Wealth, sells three types of investment: first position commercial mortgages with an annual yield of 5%, secondary market annuities with above average, risk adjusted yields, and a commercial bridge loan fund that potentially returns 6%. According to the Financial Industry Regulatory Authority (FINRA) website, BrokerCheck, there is no broker-dealer named Woodbridge Wealth.