Note: NOTHING THAT FOLLOWS CAN BE TAKEN AS INVESTMENT ADVICE. YOUR PERSONAL DUE DILIGENCE IS REQUIRED TO DECIDE TO KEEP OR SELL AN INTEREST IN THE Woodbridge Liquidation Trust
Are you a noteholder, unitholder, or investor in Woodbridge Wealth / Group of Companies?
Looking for the latest updates on the impending Chapter 11 bankruptcy? Are you a Woodbridge noteholder, interested in the latest news on the distribution? Wanting an update on when your settlement payments will arrive? Look no further.
Welcome to ‘Lessons Learned’, a website designed to help provide the latest news, updates, and insider information to help those affected by Woodbridge Wealth’s Ponzi scheme.
As someone who was impacted by this disaster, I hope this resource helps answer your questions and give you clarity.
- What Happened?
- Timeline of Events
- Latest News
Last Updated: March 25, 2020
Numerous investors, including hedge fund managers and financial professionals with decades of experience, fell victim to a lending scam spearheaded by the Woodbridge Group of Companies LLC (Woodbridge Wealth/Woodbridge Investments), a luxury real estate developer based in greater Los Angeles.
Greg W. Anderson was one of the affected parties, as were many other people, including elderly retirees. In all, over 8000 people were affected by the scam, described as a Ponzi scheme by the Securities and Exchange Commission (SEC). The SEC sued Woodbridge over the $1.2 billion scheme, and the company subsequently filed bankruptcy.
This website was created to provide a clearinghouse of information on the scheme, its legal journey in federal and state courts. The website also serves as a resource for the victims of this money scam, providing details on when those victims may receive financial compensation and recovery funds.
The goal of the site is to help these victims recover from the financial disaster the situation created and to restore trust in the financial services market. Continue reading to learn more about the situation and how to ensure a quick recovery of your funds.
Much progress has been made on the legal case against Woodbridge Group of Companies. Here is a timeline of the different components of the case, including how the original scam occurred and what victims can do to recover funds lost in the scam.
2014 – The Ponzi Programs Start
Woodbridge issued promissory notes to investors promising steady returns on secured loans. In exchange for funds used to loan to commercial property owners, investors were promised between 5 and 7% annual interest, far exceeding typically secured returns. These mid-single digit interest gains on lent dollars attracted thousands of investors. Learn more
Mid-2017 – Programs Come Into Question
Later in its life cycle, the company began paying these interest payments on the initial lenders from the new money coming in to keep what had developed into a Ponzi or ‘Ponzi-like’ scheme. More than 8400 investors were promised returns.
December 2017 – Robert H. Shapiro and Woodbridge Charged
The SEC’s thorough investigation brought charges against Robert Shapiro and Woodbridge for a 1.2 billion dollar Ponzi scheme. Shapiro was found to be violating antifraud and other security provisions.
August 2018 – Two Woodbridge Consultants are Charged
Barry Kornfield and Ferne Kornfield of Parkland, Florida, were charged by the SEC for their alleged role in soliciting investors to place their savings in a Woodbridge Plan. They were stated to have earned $3.7 million in commissions with their sales of the unregistered securities. Some invested as much as $1 million in Woodbridge loans. Kornfield claims to have no knowledge of the shady nature of Woodbridge and was convinced they were sound products. Source
November 2018 – The Chapter 11 Rehabilitation Plan
After Woodbridge filed bankruptcy, the case went to various state and federal courts. In Delaware’s state bankruptcy court good news was to be had for lenders and investors. The court approved the company’s rehabilitation plan, giving real estate managers the ability to complete the marketing and sale of properties to generate compensation funds for the victims of the original scam. Learn more
November 2018 – Rehab Plan Confirmed by State Court
After a bit of legal wrangling and a ballot completed by victims, the Delaware Bankruptcy Court formally confirmed and adopted the rehabilitation plan. While appeals to certain parts of the case are pending, this is further progress in the case. Learn more
November 2018 – SEC Agreement Sweetens the Rehabilitation Funding Pot
The SEC reached an agreement in the Chapter 11 Rehabilitation Plan. In the agreement, original scam developer Robert Shapiro promised to pay a total of $125 million in various penalties. While not all of this money will go towards funding the rehab plan, over $100 million will be signaling to Noteholders & investors that they may soon recoup some of the money they lost in the scam. Learn more
December 2018 – Information Updates for Victims
The case against Woodbridge has spanned courts on the federal and state levels and has dragged on for a bit over a year. Because victims of the scam may have changing life circumstances, it is important that they have the means to update the courts with new information. Click here to update your information
December 2018 – Cash Distributions in 2019
A Federal bankruptcy court issued an order confirming the liquidation plan of Woodbridge. Lawyers representing the company indicated that the company would emerge from Chapter 11 bankruptcy and may begin paying cash distributions to victims of the Ponzi scheme as soon as the first quarter of 2019. Learn more
January 2019 – Rehabilitation Trust News from CEO Fred Chen
Fred Chen is the CEO of the rehabilitation trust set up to compensate victims of the Woodbridge scam. According to Mr. Chen, property transactions have begun to close and this may result in insufficient funding to bring the company out of bankruptcy. Sales may also provide funding to compensate scam victims by January or February of 2019. There are still pending legal cases, including several appeals and lawsuits associated with the bankruptcy filing. Learn more
January 28, 2019 – Shapiro Fined $100 Million by SEC
According to a press release from the SEC released 1/28/19, a federal court in Florida ordered Shapiro to pay a $100,000,000 fine and totaled $1,000,000,000 in penalties.
February 15, 2019 – Initial Cash Distribution Aimed for March
Woodbridge Group of Companies, LLC announced that it has emerged from Chapter 11 bankruptcy following confirmation of its liquidation plan. They also announced that it is targeting an initial cash distribution to take place on or before 3/31/19. We will have a full report soon.
March 20, 2019 – Distribution Confirmed for First Quarter
An insider has confirmed that the first distribution of funds will indeed occur in the first quarter of 2019 (April at the latest). The exact date has not been confirmed as of yet. Learn more
April 3, 2019 – First Checks Begin to Come In
An individual confirmed to Anderson that he received a distribution check from the Rehabilitation Trust in the mail. Have you received yours yet? Learn more
April 4, 2019 – Self Directed IRAs with Custodians
If you have yet to receive your check from the trust, be patient. Custodians will take 5 or so days to be deposited into everyone’s IRAs. Learn more
April 5, 2019 – Progress
The Ponzi is finally starting to unwind. Real estate sales are in full swing and driving the rehab trust efforts. Learn more
April 15, 2019 – Additional Charges Brought to Key Players
Both Ivan Acevedo and Dane Roseman were arrested on April 11, 2019, for their role in the Woodbridge $2 billion Ponzi scheme. Learn more
May 8, 2019 – Source: August is Likely For Next Cash Distribution
Greg anticipates that August is realistic for the next cash distribution. Lower value real estate has been sold off. Learn more
June 7, 2019 – Falling Mortgage Rates
Positive news for note or unit holders. Mortgage rates continue to fall nationwide, encouraging real estate to be sold at a faster rate. Learn more
June 20, 2019 – Good for Real Estate
Similar to the last update, interest rates appear to be dropping this summer, opening up the door for larger real estate purchases. Learn more
July 11, 2019 – Liquidity Soon!
The goal of creating a liquidity route for impacted investors is getting closer. Learn more
July 18, 2019 – Next Distribution
An email exchange with a contact at the bankruptcy trust claimed ‘end of July’ (this was back in May). However, things are rolling, it appears fall is more likely. Learn more
August 5, 2019 – Update on activity and timing
Real estate sales slow because of Woodbridge’s bankruptcy filing. Learn more
August 6, 2019 – Robert Shapiro Goes to Jail
Shapiro appears to be reaching an agreement with Dep. of Justice on jail, forefeiture of assets, and more. Learn more
September 18, 2019 – Distribution
Still no firm timeline for next distribution. It was said to be around September. Learn more
September 20, 2019 – Update on Distribution
From Michael Goldberg, the manager of the bankruptcy trust: “Should be public within 60 days. Working on fixing/selling homes. Exact date of next distribution unknown.” Learn more
October 15, 2019 – Today’s News: CEO and Owner of Woodbridge Group Gets 25 Years in Prison
On Tuesday, October 15, 2019, Robert Shapiro, the mastermind behind the Woodbridge scam, was sentenced to 25 years in prison for orchestrating a ponzi scheme that included over 8,000 investors and close to a $500 million loss. Read more
October 25, 2019 – Registration Filed with SEC today
Registration application filed with the SEC that benefits the ability to create liquidity was file today. Read more
November 30, 2019 – November Report
An update on November’s status. Read more
DECEMBER 21, 2019 – Offer From Contrarian Capital
Many folks (but apparently not all) in the Woodbridge note program received their checks. This hedge fund is offering 11.8 cents per dollar ($150 > $17,700). Read more
DECEMBER 24, 2019 – How do I look ….?
Don’t ask a barber if you need a hair cut. When considering selling your shares in the bankruptcy, be cognizant of who is providing the advice. Learn more
DECEMBER 26, 2019 – Info for you on Contrarian offer
Michael Goldberg will provide his advice on his website on the offer from Contrarian Capital. Read more
JANUARY 8, 2020 – Great News!
The trust manager announced $53 million will be sent out to parties by January 10th. Read more
JANUARY 9, 2020 – Input for you on the Contrarian offer
The trust manager provides insight on taking the contrarian offer. Read more
February 6, 2020 – No One’s going to like this
Taxes must be filed before distribution. Read more
March 24, 2020 – Still no clue on ‘tax forms’
March 25, 2020 – Just a funny for you
An update from Greg reminding you to smile during these times. Read more
More updates will be provided as they arise. Don’t forget to follow the blog for updates.
66 thoughts on “Woodbridge Bankruptcy Update: Timeline, Latest News & More”
Many thanks for the info, Can you keep me updated, much appreciated.
Question, have completed 2017 Ammended tax 1040x, how do I proceed with 2018 1040x? Don’t want to hire CPA, my returns would not be worth it, since my tax bill is low.
my understanding was this applied to 2016 and ’17 only NOT 2018 1040x’s
Greg I was trying to write off for the prior years not 2018? Are we allowed to write off the total that we lost on the scam for instance if you invested $50,000 you could right off the $50,000
My understanding is you can ‘write off’ the $50,000 less all the previous payments received in prior years (via interest payments).
This net number is the loss – initial loan (i.e. the $50k you used) minus all the interest payments received.
Think of it like a ‘net basis’ sort of thing.
I tried to write off the losses doing taxes last year and was told that the tax changes under Trump eliminate that is there any truth to that?
Yes. The 1041x was for 2016 and 2017 – 2018 is not allowed.
But that amended return has worked well for many – I saw the IRS checks.
As a unit-holder do you believe that with the property that they are trying to sell will we ever get the money back that we invested. And with the fines on Shapiro and associates would that help as well?
What’s the latest on Shapiro?
Lights on at 6:30 a.m.; lights out at 9 p.m. For 25 years.
P.s use your complete and real name with me going forward.
I filled out a 1040X for 2017 and subtracted the amount from Ripbridge, didn’t really know what I was doing. Just got a nice check back from Uncle Sam only took about 2 week. Thanks to your website I got back the taxes I paid on the income I didn’t get.
Happy to help. Did you have % in ’16 or ’15? You can get that back too.
I tried to do that kept getting shot down said trumps new tax plan screwed me how do I go about it?
I don’t know of a problem on the 1040x for past years … several of my clients got it just fine.
You may know something I don’t … or your software is too basic. If it were me, I’d just print the 1040x, fill in by hand with the 1099 $ data and send off.
My understanding is you are applying for the taxes back on all 1099 % you reported in prior years. So $x were reported to you in 2016, you paid those taxes … that’s the money the IRS will refund.
Again, my understanding of this.
I was glad to testify this morning against Robert Shapiro, 25 years will never be enough to pay for all the pain he has caused to many families that work hard to earn the money that he spent without scrupulous
Morning Greg. Do you feel it is a benefit with them going public for us investors of getting more of our money back?
Very small amount of $ in this universe ($550 million or so), no market that I see of buyers … sellers will have huge discounts in all likelihood to ‘sell’ to someone
list the real estate, sell it and get us paid … i feel they are making themselves a career out of this effort
What and when we will ever see are money back we invested our retirement portfolio into this we are Seniors into this since it came pre taxed fund and placed into IRA CAN WE CLAIM THE LOSS at all.
An IRA doesn’t really have ‘losses’ in that the taxes haven’t been paid yet.
IRA’s are taxed on the net taken out. I hope that helps.
Click to access Woodbridge-Liquidation-Trust-Quarterly-Report-9-30-19.pdf
Here’s the Nov report, did you see this?
Joe : Ref : This last letter we received outlining interest for past year 2019. Has anyone Determined if this is the final document for interest in this year of 2019
i think it is for 2019 %
What tax year would I use for a 1040x, the year the investment was made or the year interest was stopped?
My understanding is 2015 and 2016. I will say I’m not clear on why not 2017 (the year of the bankruptcy) Exactly 2 years back from today actually
Click to access Woodbridge-Liquidation-Trust-Quarterly-Report-9-30-19.pdf
Had you seen this?
So I have not seen when are they projecting the next payout?
Sorry I can’t tell you more ….
I just saw the attached at the woodbridge Liquidation site.
4.5 bucks per class A interest. Whoo hoo! Happy new year.
Click to access Press-Release.pdf
Its a start
Do we know when they will be paying out the amounts we invested?
How do they determine who gets paid back next?
everyone is paid distributions at the same time (by law).
the distributions come when they have sold enough real estate to have a sufficient pot of money (around $50 million) to make a distribution worth the effort/expense.
your mail man is faster than mine – i don’t have that yet.
can you scan / email to me to look at? is that easy for you?
On 2/24/20 Woodbridge filed a Form 8K for sale of 10721 Stradella Court for $60 million. To close 5/8/20.
Thx for this.
What’s the link you are using to follow (where you found this)?
Seems like a large sale. Hopefully that bodes well for Owlwood getting under contact as well soon!
8K is just the form for the Sale of the inventory?Kev
Thanks as always Greg. I call again Liquidation Trust 310-203-4271. Pachulski, Stang, Ziehl+Jones LLP regarding form for taxes. Not that it matters they never respond by a call back or email.
i doubt they will comment on IRS stuff
THANKS Greg can you tell me where I look for updates on information? Any idea with this latest sale if we will get a few more dollars. Joe
First make sure you are on this list correctly.
can you explian what this liquidation trust motion for Sept16 hearing date means?
I don’t. Did you get the large packet in the mail about the ‘settlement’ with Shapiro? Wild read.
When was the “large packet” sent or dated as I don’t think I received it but would like to read it?
its on the Garden City Group website …. do you have that handy?
no I did not get that just little index cards stating something about filing CHapter 11 Bankruptcy thought they already filed acourt date in Sept 16. if we object we have till Spt2 to respond.
if your funds were IRA, those notices go to the IRA custodian – were you an IRA lender or non qualified dollars?
Last time you posted I saw you mentioned that a number of Attorneys of companies are being sued by the trust and you felt that the trust could get a decent sum of money that would assist us towards the payouts for the money we lost? You still feel that way you never answered last time I sent it to you?
I very much do feel that confidence.
Ok thanks for getting back to me.
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Any news when the tax form for 2019 taxes will be sent to us
you got this my now, right?
Woodbridge Liquidation Trust just announced a distribution of $2.56 a share on November 6, 2020.
thanks for this
Greg: I don’t understand why it’s taking so long to sell primarily California properties! Everything out there is red hot so why the delays? I think it’s just making life-time work for these attorneys! Sell um and get us our money!
i know some are in fix flip efforts
Is there anything happening regarding our lawsuits against the attorneys who helped Shapiro?
I haven’t been able to get research done; due to CA charging a $200 fee for lawyers (I know) to access the CA court data.
if we can somehow take up a collection for the $200, I have someone that will research them for me.
Has anything happened in 2022 worth posting? Where is everyone?
No, not a lot of sales/distributions in the second half of 2022
What is the latest with Woodbridge/continental distributions. Has it just stopped?
no haven’t stopped; just pokey on getting the next out
You mentioned raising funds to cover the CA $200 fee for research. I would gladly contribute to the fund. Any ideas on how to get the ball rolling?
ok, let me figure this $ thing out
thx for the reminder