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

What Happened?

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. 

Timeline

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’

2019 tax forms are still up in the air. Read more

LATEST NEWS

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.

Published by Greg W. Anderson

CEO and founder of Balanced Financial Inc.

66 thoughts on “Woodbridge Bankruptcy Update: Timeline, Latest News & More”

  1. Pingback: District Court in Florida Announces Penalties Against Woodbridge, Shapiro – Lessons Learned from the Woodbridge Scam
  2. Pingback: How to Recover Past Taxes paid on Woodbridge 1099 Interest – Lessons Learned from the Woodbridge Scam

  3. 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.

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      1. 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

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      2. 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.

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  4. 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?

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  5. 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?

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  7. 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.

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      1. I tried to do that kept getting shot down said trumps new tax plan screwed me how do I go about it?

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      2. 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.

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    2. 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.

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  8. 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

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  9. Morning Greg. Do you feel it is a benefit with them going public for us investors of getting more of our money back?
    Kevin

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    1. Nope.
      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

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  10. 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.

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    2. 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

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    1. 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.

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      3. 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.

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  17. 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

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      1. When was the “large packet” sent or dated as I don’t think I received it but would like to read it?

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  19. 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.

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  20. 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?

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  23. 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!
    Joan Sheridan

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    1. 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.

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  27. 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?

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