Talk:Woodbridge Securities

The Woodbridge Ponzi is an important topic that I have been following since I heard Ray Kay advertise on KNX 1070 radio radio a product that paid 5 to 6% for a one year term in the summer of 2017. I had no idea it was Woodbridge until the Dec 2017 BK. Here some research with links but putting in ref for all of them is time consuming and screws up the text

What was sold? There were two offerings: Woodbridge sold investors two primary types of securities: (1) twelve-to eighteen month term promissory notes bearing 5%-8% interest that Woodbridge described as First Position Commercial Mortgages (“FPCM Note” and “FPCM Investors”), which were issued by one of Woodbridge’s several affiliated Fund Entities, and (2) seven different private placement fund offerings with five-year terms: (a) Woodbridge Mortgage Investment Fund 1, LLC; (b) Woodbridge Mortgage Investment Fund 2, LLC; (c) Woodbridge Mortgage Investment Fund 3, LLC; (d) Woodbridge Mortgage Investment Fund 3A, LLC; (e) Woodbridge Mortgage Investment Fund 4, LLC; (f) Woodbridge Commercial Bridge Loan Fund 1, LLC; and (g) Woodbridge Commercial Bridge Loan Fund 2, LLC; (collectively “Fund Offerings” and “Fund Investors”) https://www.sec.gov/litigation/complaints/2018/comp-pr2018-157-2.pdf

What was the Ponzi Scheme? From the same document: Woodbridge’s claim to be making high interest rate loans to “third party”borrowers was a lie. In reality, Woodbridge’s business model was a sham. Investors’ funds were used to purchase, in the name of a Shapiro controlled Limited Liability Company (LLC), almost 200 residential and commercial properties, primarily in Los Angeles, California and Aspen, Colorado. Thus, nearly all the “third-party” borrowers were Shapiro owned and controlled LLCs, which had no source of income, no bank accounts, and never made any loan payments to Woodbridge, all facts Woodbridge and Shapiro concealed from investors. 23. Because Shapiro’s LLCs were not making any of the promised interest payments and Woodbridge’s other revenue was minimal, Woodbridge sought to convince FPCM Investors to rollover their investment into a new note at the end of the term, so as to avoid having to come up with the cash to repay the principal. For the payment of returns to FPCM and Fund Investors and redemptions to FPCM Investors who did not rollover their notes, Woodbridge raised and used new investor funds, in classic Ponzi scheme fashion. 24. Finally, on December 1, 2017, after amassing more than $1.22 billion of investor money, with more than $961 million in principal still due to investors, Woodbridge and Shapiro missed their first interest payments to investors after purportedly ceasing their fundraising activities. Without the infusion of new investor funds, just days later, on December 4, 2017, Shapiro caused most of his companies to be placed in Chapter 11 Bankruptcy.

Sharipo’s Lifestyle https://www.wsj.com/articles/woodbridge-bankruptcy-spotlights-ceos-luxury-spending-1525086115 https://www.mansionglobal.com/articles/the-alleged-1-2-billion-ponzi-scheme-sapping-l-a-s-trophy-home-market-89626

Many States banned Woodbridge from selling: https://www.aspentimes.com/news/five-states-claimed-securities-violations-against-woodbridge/ “These states include Arizona, Texas, Massachusetts, Pennsylvania and Michigan. These cases alleged that Woodbridge offered and sold unregistered securities, didn't provide investors with information required by law and in some cases alleged that Woodbridge also had defrauded investors by not providing full disclosure.”

Also https://dfr.oregon.gov/AdminOrders/enf-orders-2018/Woodbridge%20Wealth%20Consent%20Order%20sigg.pdf pages 5-6

Who sold these? Barry Kornfeld was banned by the SEC https://www.sec.gov/litigation/admin/2010/34-62466.pdf https://www.bizjournals.com/southflorida/stories/2009/05/25/daily50.html

but sold these as insurance agent https://www.sun-sentinel.com/local/palm-beach/boca-raton/fl-bz-florida-woodbridge-complaint-20180501-story.html https://www.palmbeachpost.com/business/barred-florida-broker-used-classes-lure-investors/Ym0kFLYSCGebWEzY9ijJMI/ https://www.marketwatch.com/story/sec-charges-unregistered-brokers-who-sold-shares-in-fraud-to-retail-investors-2018-08-20

Florida ignored a warning from an investment advisor https://www.tcpalm.com/story/news/investigations/2018/01/24/woodbridges-alleged-ponzi-scheme-hits-home-treasure-coast-seniors-bilked-savings/1058588001/

Ray Kay is not a real person. https://www.msn.com/en-us/money/markets/a-private-market-deal-gone-bad-sketchy-brokers-bilked-seniors-and-a-cosmetologist/ar-AAwTVgn Ray Kay, who works as a financial adviser in Beverly Hills, Calif., advertised on the radio a purportedly low-risk, high-income investment.

There were a few points Mr. Kay omitted. He used to be called Raymond L. Kotrozo. Under that name, he was barred from the securities industry for allegedly running a fraud, according to public records, and later fined $5,000 for breaking that ban.

No way to know this! If you input Kotrozo Raymond in the CA Ins. Lookup you are sent to Ray Kay. But if you input Kay Ray you are not sent to Kotrozo! Another regulatory failure. https://interactive.web.insurance.ca.gov/webuser/licw_name_search$lic_name_qry.actionquery

Here are some links to marketing materials still up, search First Position Commercial Notes Woodbridge http://www.thesummitweb.com/wp-content/uploads/2016/12/WW_AlternativeWealthBuildingpowerpoint-1.pdf http://shpnews.com/download/Woodbridge-Senior-Interest-FAQ-121112.pdf http://www.advretirementplanning.com/first-position-commercial-mortgage-faqs/ http://www.gregcjohnson.com/uploads/7/8/5/2/7852636/fpcm-buyers_guide.pdf http://croweandassociates.com/wp-content/uploads/2015/03/Woodbridge-FPCL-brochure.pdf

Company Name history: Woodbridge Group of Companies is the correct name. https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=545639615 “Woodbridge Group of Companies, LLC specializes in real estate consulting service, and note buying and selling, hard money lending, alternative financial space services . The company was founded in 2014 and is based in Sherman Oaks, California.”

Shapiro's entities, Defendants Woodbridge Group of Companies, LLC (d/b/a Woodbridge Wealth) ("Woodbridge"), RS Protection Trust ("RS Trust"), WMF Management, LLC ("WMF"), Woodbridge Structured Funding, LLC (a/Ida Woodbridge Structured Funding of Florida, LLC) ("WSF"), Woodbridge Mortgage Investment Fund 1, LLC ("Fund l "), Woodbridge Mortgage Investment Fund 2, LLC ("Fund 2"), Woodbridge Mortgage Investment Fund 3, LLC ("Fund 3"), Woodbridge Mortgage Investment Fund 3A, LLC ("Fund 3A"), Woodbridge Mortgage Investment Fund 4, LLC ("Fund 4"), Woodbridge Commercial Bridge Loan Fund 1, LLC ("Bridge Loan Fund 1 "), Woodbridge Commercial Bridge Loan Fund 2, LLC ("Bridge Loan Fund 2"), 144 Woodbridge-affiliated Property Limited Liability Companies ("Shapiro Property LLCs"), and 131 Woodbridge-affiliated Holding Limited Liability Companies ("Shapiro Holding LLCs") (collectively the Shapiro entities are referred to as "Corporate Defendants"), were each essential to Shapiro's fraudulent business operation. Source: https://www.sec.gov/litigation/complaints/2017/comp-pr2017-235.pdf

(There is a different Canadian Company of the called “The Woodbridge Group” that produces industrial products. https://www.woodbridgegroup.com/)

Woodbridge started out as Woodbridge Structured Funding LLC is a funding house. The Company offers purchase service of future payment in return of a lump-sum. https://www.bloomberg.com/profiles/companies/0248445Z:US-woodbridge-structured-funding-llc

Here is what seems to be more of press release from 2015: Woodbridge Luxury Homes of California Powerhouse Behind Beverly Hills Mega Mansion July 10, 2015 The Woodbridge Group of Companies, LLC consists of: Woodbridge Structured Funding, LLC, a leader in the structured funding industry since 1993; Woodbridge Luxury Homes of California, a real estate development company specializing in buying and selling luxury real estate in the Los Angeles area; Woodbridge Realty of Colorado, a full-service, real estate company that sells commercial and residential properties in Aspen, Basalt, Carbondale, and Glenwood Springs, Colorado; Riverdale Funding, LLC, 35 years of experience in working with commercial loans, first mortgages and real estate acquisitions; and Woodbridge Structured Funding Foundation, the philanthropic wing of the Woodbridge Group of Companies, the Foundation seeks to improve the quality of life of sick children, distressed women, and veterans in need. https://mosnarcommunications.com/woodbridge-luxury-homes-of-california-powerhouse-behind-beverly-hills-mega-mansion/

In 2016, they changed the name to: Woodbridge Structured Funding Announces Its Successor Company, Woodbridge Wealth – A Division of Woodbridge Group of Companies Shifts Company Focus to Wealth Creation

February 09, 2016 11:01 AM Eastern Standard Time NEW YORK--(BUSINESS WIRE)--Woodbridge Structured Funding, offering next generation financial products, today announced the launch of its successor company – Woodbridge Wealth. This change represents the firm’s shift to focus less on a specific product and more on the ultimate goal of creating wealth. https://www.businesswire.com/news/home/20160209006275/en/Woodbridge-Structured-Funding-Announces-Successor-Company-Woodbridge

Finally the Court Docket if you want to read the Docket http://cases.gardencitygroup.com/wgc/ CASE NO. 17-12560 (KJC) is up to 3,251 entries.

I forgot about Jordan Goodman! https://www.moneyanswers.com/ who is selling his own Real Estate private placement now by the way. https://www.sec.gov/Archives/edgar/data/1678107/000144586618000631/sreis_1apos.htm

Goodman was just made a deal with the SEC to repay referral fees he got. Somewhere he denied Woodbridge was a ponzi scheme but I cannot find it now. https://nypost.com/2018/12/20/answers-man-allegedly-played-key-role-in-1-2b-ponzi-scheme/

I hope that is enough for someone to write a decent article. Dec 29 2018 Nofway (talk) 15:37, 29 December 2018 (UTC)