The Securities and Exchange Commission has sued Robert Shapiro, accusing the former chief executive of Woodbridge Group of operating a Ponzi scheme that raised more than $1 billion from individual investors for the now-bankrupt real estate operation, WSJ Pro Bankruptcy reported. Shapiro is accused of lying to investors, signing falsified documents and making “Ponzi payments to investors,” as well as using investor funds for his own personal enjoyment, among other wrongs, according to papers unsealed yesterday in a Florida federal court. A lawyer for Shapiro says the former chief executive denies the SEC’s allegations. “Mr. Shapiro is cooperating with the bankruptcy to protect the assets held for the benefit of Woodbridge’s stakeholders,” said Ryan O’Quinn, a lawyer for Shapiro. “He denies any allegation of wrongdoing and looks forward to his opportunity to defend himself in a court of law.” Woodbridge and some of its affiliates filed for chapter 11 bankruptcy protection Dec. 4, a year into an SEC probe of its fundraising activities.
