Two California Advisors Plead Guilty in $1.3 Billion Woodbridge Ponzi Scheme
From the Desk of Jim Eccleston at Eccleston Law:
Two California advisors, Dane Roseman and Ivan Acevedo, have pleaded guilty to charges relating to a $1.3 billion Ponzi scheme that impacted nearly 9,000 investors nationwide, according to federal prosecutors. Both Los Angeles natives were associated with Woodbridge Group as sales agents. The firm enticed investors by falsely claiming to profit from high-interest rate loans issues to third-party real estate buyers. The firm’s owner and CEO, Robert Shapiro, transferred the funds to purchase his own properties; however, Shapiro’s acquired properties failed to generate profits large enough to cover the firm’s obligations to investors, according to prosecutors.
In 2019, Shapiro was handed a 25-year prison sentence for his conduct relating to the scheme. Prosecutors currently are vying for five-year prison sentences for Roseman and Acevedo based on their plea agreements. According to prosecutors, the scheme began in July 2012 and lasted until December 2017 when Woodbridge defaulted on its obligations to investors. While Roseman and Acevedo each falsely claimed that the firm was profitable, neither individual apparently was aware of the full magnitude of Shapiro’s scheme. According to the Justice Department, 7,000 of the 9,000 individuals who invested in Woodbridge lost money.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.
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