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.
Lawsuits filed under state securities laws will serve as a supplement to whatever funds are recovered from the bankruptcy estate. The bankruptcy trustee for the Woodbridge Group holds all claims against Woodbridge and its insiders, and is tasked with marshaling all of Woodbridge’s assets (including properties), preserving the assets, then distributing the assets to the creditors of the estate, which includes investors.
It is too early to predict how much money will be available to repay investors after paying off creditors. Even if the proposed distribution to investors is 50 cents on the dollar, that leaves investors with a 50% loss, in addition to lost interest.
As a result, investors should consider pursuing claims under their state’s securities laws. Most states’ securities laws provide that investors who prevail on their claims have the right to recover lost interest and attorney’s fees in addition to their original principal. These claims can (and should) be filed immediately against anyone involved in the sales process, including financial planners, insurance agents, and anyone who played a material part (for compensation) in the transaction.
The securities attorneys at The Law Office of David Liebrader have a well-documented history of pursuing these ancillary claims under the state securities laws. Among the cases we have handled where companies have been placed into bankruptcy as a result of securities law violations have been those involving the Resorts Holding International/Michael Kelly fraud and the Diversified Lending Group/Bruce Friedman fraud. In each of those cases we filed dozens of lawsuits and arbitration claims against the salesmen who solicited the unregistered securities, and we recovered millions of dollars for victimized investors.
If you are a Woodbridge Group investor and have questions about your options please call The Law Office of David Liebrader at (702) 380-3131. We presently represent several clients who purchased unregistered Woodbridge Group securities.
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery. For the past 23 years, we have dedicated our law practice to assisting investors who have been victims of investment fraud via fraudulent and unsuitable investment transactions. During that time we have recovered money for over one thousand individuals, pension plans, trusts and companies. The recoveries we have obtained via judgments, awards and settlements on behalf of our clients exceed $40,000,000.
Our firm takes cases on a straight contingency fee, with no money up front, and no money owed unless there is a recovery. There is no charge for an initial consultation, so call (702) 380-3131 today to speak with an experienced securities attorney who will fight to recover your losses.