The SEC (Securities and Exchange Commission) advanced charges against former executives of Woodbridge Group. The total claim is $1.2 billion. Woodbridge engaged in an elaborate Ponzi, mostly against the elderly.
Ivan Acevedo and Dane R. Roseman, former directors of investments at Woodbridge, were charged for their roles in the scheme. Acevido and Roseman, were former controlling persons of Woodbridge
The criminal charges against them pend in Federal Court in Los Angeles.
Woodbridge petitioned for bankruptcy in December 2017 after the SEC accused Woodbridge and its principals for defrauding more than 8000 investors.
In 2018, the SEC also charged five unregistered broker for selling more than $243 million in unregistered Woodbridge funds. 1,600 retail stock brokerage customers were involved and lost money.
In a second set of charges in 2018, 13 individuals were charged for selling more than $350 million worth of Woodbridge’s securities to 4,400 investors.
Those securities were unregistered.
Roseman and Acevedo allegedly were compensated at least $3 million in raising $1.2 billion from investors. Roseman and Acevedo through Woodbridge substantially used moneys from new investors to pay existing investors. This is a classic Ponzi arrangement in the nature of the Madoff Securities LLC Ponzi scheme.
An SEC spokesman stated in part: “Instead of telling investors the truth — that Woodbridge’s third-party lending business was a sham almost from inception — we allege that Acevedo and Roseman worked diligently to perpetuate this sham by preparing and disseminating false marketing materials to induce more investments, keeping this massive Ponzi scheme afloat…” .
Anthony M. Abraham, Esq., PC, has represented many investors who have claimed against Bankrupt and other estates for return of assets taken through fraud. Anthony M. Abraham, Esq., PC is experienced in churning and unauthorized trading claims. If you were victimized in this Ponzi scheme and need help, please call us Toll Free at 1-877-430-4877 for a Free Consultation or email us at Anthony@Abrahamattorneys.com.