[dewilson58]

The Feds say they just blew up a $1.2 billion Ponzi scheme aimed at thousands of elderly people in Florida.


>The US Securities and Exchange Commission has filed charges against Robert H. Shapiro, alleging that he bilked investors — many of them senior citizens — out of $1.2 billion as part of a Ponzi scheme.
>All remaining assets have been frozen as the SEC pursues its case, which includes charges of fraud and violations of broker-dealer registration provisions.


The US Securities and Exchange Commission has filed charges against a group of unregistered investment funds and their owner, alleging a $1.2 billion Ponzi scheme.

Robert H. Shapiro is being accused of using a group of unregistered investment firms, collectively called the Woodbridge Group of Companies LLC, to defraud more than 8,400 investors — many of them senior citizens. Formerly headquartered in Boca Raton, Florida, the company allegedly promised to pay investors interest of 5% to 10% annually.

Woodbridge claimed that its primary business was the issuance of loans to supposed third-party commercial property owners, which they said paid 11% to 15% annual interest. Yet the SEC's complaint alleges that the "vast majority" of borrowers were companies owned by Shapiro that had no income and never made such interest payments.