Woodbridge Group of Companies is a luxury real estate developer based out of Sherman Oaks, California. Today, the company filed bankruptcy in Delaware. Woodbridge operates through a complex network of more than 250 affiliated companies owned by RS Protection Trust, of which Robert Shapiro is the trustee and his family members the sole beneficiaries. Mr. Shapiro resigned as Woodbridge’s chief executive officer on Friday. Even though Mr. Shapiro has resigned, he will still be paid $175,00 per month for consulting fees. In September 2016, an affiliate of Woodbridge, Sturmer Pippin Investments, LLC, paid $90,000,000 (yes that is $90 million) for Owlwood Estates, the storied former home of stars such as Tony Curtis and Cher.
According to court documents, the U.S. Securities and Exchange Commission has been investigating Woodbridge, which calls itself a leading developer of high-end real estate, since 2016 for possible fraudulent sales of securities. Woodbridge said it also had received inquiries from about 25 state regulators about its securities sales and the alleged offer and sale of unregistered securities by unregistered agents. According to documents filed in the bankruptcy case, the company owes $750 million to an estimated 8,998 noteholders, Click here, here and here for the full story.