Creditors of Woodbridge Group, the real-estate developer at the center of an alleged $1.2 billion Ponzi scheme, have moved to oust the turnaround management team selected by former chief executive Robert Shapiro, who is accused of masterminding the alleged fraud, WSJ Pro Bankruptcy reported. In an emergency court filing on Thursday, the official committee representing thousands of individual investors caught up in the alleged Woodbridge fraud called on a bankruptcy judge to put the company’s affairs in the hands of a trustee. Regardless of the fraud allegations, Woodbridge owns a portfolio of high-end real estate, creditors contend. With professional tending, the properties can generate cash for thousands of small investors who otherwise face financial hardship, their lawyers say.
