The Woodbridge Group of Companies filed for bankruptcy in December, 2017 after the Securities and Exchange Commission opened an investigation against them for, among other things, selling unregistered securities. As a result of these two proceedings, Woodbridge Group’s assets have been frozen, and investors face a long delay before they begin receiving their investment principal back.
In the meantime, investors should consider their options; If the SEC and multiple state securities regulators are correct, that the Woodbridge Group sold unregistered securities through misrepresentations, then investors may have a remedy they can pursue while the bankruptcy proceedings unfold in Delaware.
Not only does Woodbridge Group and its “control persons” (including Robert Shapiro) have liability for selling unregistered securities, but so does anyone who materially aided in the transactions, such as the salespeople, and possibly, the company that employed the salespeople. All states have securities laws that prohibit the sale of unregistered securities, and investors should look to their state’s securities laws to pursue claims and recover funds lost in their Woodbridge Group transactions.