Ponzi Record

United States ยท About July 2012 to December 2017, according to the US Attorney's Office

Woodbridge Group of Companies first position commercial mortgage notes

The US Attorney's Office said Woodbridge sold promissory notes pitched as loans tied to third party real estate that paid high monthly interest, while Shapiro secretly owned the properties through more than 270 LLCs. It said Shapiro paid earlier investors with money from new investors because the real estate did not generate enough cash.1

Losses as statedThe US Attorney's Office said investors put in more than $1.29 billion, including about $400 million of retirement savings.1
Victims as statedThe US Attorney's Office said about 9,000 investors, while its summary also refers to more than 7,000 victims.
Recovered for investorsNot confirmed. The Woodbridge Liquidation Trust site blocked automated access.

People and outcomes

Robert H. Shapiro

Pleaded guilty in August 2019. Sentenced in Miami on 15 October 2019 to the maximum of 25 years in prison for leading the fraud and for a separate income tax offence.1,2

Response: Shapiro pleaded guilty, according to The Real Deal. No courtroom statement is reported in the sources reviewed.2

Timeline

  1. Woodbridge files for Chapter 11 bankruptcy.1
  2. Shapiro pleads guilty.2
  3. Shapiro sentenced to 25 years in prison.2
  4. Sales managers Dane Roseman and Ivan Acevedo plead guilty to conspiracy.1

Sources

  1. US Attorney's Office, Southern District of Florida, Two remaining defendants in $1.3 billion investment fraud Ponzi scheme, one of the largest ever, plead guilty (13 July 2021)
  2. The Real Deal, Developer Robert Shapiro sentenced to 25 years in prison for massive Ponzi scheme (15 October 2019)