The Securities and Exchange Commission has added its voice to a call from creditors to appoint a bankruptcy trustee for Woodbridge Group, a real-estate firm that raised more than $1 billion from investors in what regulators are calling a Ponzi scheme, WSJ Pro Bankruptcy reported. A judge could say as early as Jan. 10 who will run the embattled company: the restructuring team chosen by departed chief executive and accused Ponzi mastermind Robert Shapiro, or a court-appointed trustee. The company opposes appointing a trustee. “We believe the time-tested Chapter 11 process, paired with the business expertise of the new independent management team, best protects the interests of creditors, offers them a voice in the process and will maximize recovery,” Woodbridge said in a statement. The company filed for bankruptcy protection Dec. 4, shortly after Shapiro handed the reins to a restructuring team, and shortly before the SEC closed in.
