Beware the promises of high returns. Lots of sharks in the waters
Hello all –
To beat my drum about KNOWING WHO YOU DO BUSINESS WITH!
I was pitched by Woodbridge a couple of years ago. At that time I decided I wanted my name on title in real estate transactions. This way, if I lose money it’s my fault.
The Securities and Exchange Commission has announced charges against a phony mortgage lender it says bilked thousands of investors in a $1.2 billion Ponzi scheme. The SEC also issued an asset freeze against a group of unregistered funds owned by the builder.
According to the SEC, Robert H. Shapiro and a group of unregistered investment companies called the Woodbridge Group of Companies scammed more than 8,400 investors who thought they were investing with a hard-money lender. Woodbridge advertised its primary business as issuing hard-money loans to commercial property owners who paid Woodbridge 11%-15% annual interest. In return for their investments, Woodbridge allegedly promised to pay investors 5%-10% annually.
