SEC $1.2bn Woodbridge Ponzi

• Two former Woodbridge Group directors Ivan Acevedo and Dane Roseman were
  arrested and charged by authorities, with the Woodbridge owner Robert Shapiro.
• Follows SEC Jan. 2019 court order to Woodbridge pay $1bn settlement, #52374.
• Charged with conspiracy for mail and wire fraud, money laundering, tax evasion.

Violations

• Although firm were unregistered in any capacity with SEC, they were responsible
  for fraudulently raising at least $1.2 billion from more than 8,400 retail investors.
• Ran scheme through Woodbridge, offices across US, including Florida, California.
• Targeting elderly investors who had IRAs), with speculative, fraudulent securities.
• Issued investors promissory notes, on purported loans to Woodbridge, that paid
  monthly interest and matured in 12-18 months, tied to real third-party property.
• The defendants received over $3mn, transaction-based and other compensation.
• Acevedo oversaw fundraising for Woodbridge Securities from 2012-15, when left.
• Defendants hired and trained the sales force, also approved marketing materials
  and sales scripts, that helped create appearance that Woodbridge was legitimate.
• In reality, was Ponzi scheme that used money from new investors to pay existing.

Sanctions Sought

• Shapiro caused most of the Woodbridge companies to file chapter 11 bankruptcy.
• Caused investors to suffer substantial losses, were owed close to $1bn principal.
• 2,600 investor victims invested their retirement savings, totaling about $400mn.
• DoJ said Shapiro is detained in prison, Roseman and Acevedo to appear in court.
• SEC sought disgorgement of ill-gotten gains with interest, and financial penalties.