July 10, 2018 / 9:59 PM / a month ago

Woodbridge acknowledges Ponzi scheme in outline of bankruptcy exit

Luxury home developer Woodbridge Group of Companies on Monday said it aims to return between 40 percent and 70 percent of its remaining funds to note- and unit-holders to end a bankruptcy that resulted from an admitted Ponzi scheme that bilked over 8,400 investors out of more than $1.2 billion.

Woodbridge in papers filed in U.S. Bankruptcy Court in Delaware disclosed details of its planned liquidation. It also acknowledged its business since at least mid-2012 was based on raising money from new investors to pay previous ones, adding that owner Robert Shapiro was responsible for the “massive, multi-year fraudulent scheme.”

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