by Structured Settlement Watchdog
On October 25, 2018, The United States District Court, Southern District in Miami, found Robert Shapiro, his wife and various named entities owned by Shapiro responsible for paying $892 million to the SEC. The fines will go to a "fair fund" that will be used to help compensate the victims of $1.2 billion Ponzi scheme.
Shapiro owned Woodbridge filed for bankruptcy in December 4, 2017 just before an SEC suit was filed, alleging that ex-CEO Robert Shapiro defrauded investors in a $1.2 Billion Ponzi scheme that drove Woodbridge into bankruptcy. The Delaware bankruptcy court found sufficient evidence to show that the debtors operated as a Ponzi scheme received approval Oct. 29 to go forward with the liquidation plan for its remaining assets. The bankruptcy court found sufficient evidence to show that the debtors operated as a Ponzi scheme and the proposed settlements are fair and in the best interests of the various creditor groups. The settlement is subject to District Court approval.
Woodbridge Group of Cos., 17-12560, U.S. Bankruptcy Court, District of Delaware.
Securities and Exchange Commission v. Shapiro, 17-24624, U.S. District Court, Southern District of Florida.
Woodbridge Structured Funding, one of the name defendants in the SEC case was a structured settlement buyer and seller of structured settlement payment rights to investors.
For background please read my prior posts