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SEC Seeks Order Against 235 Entities Affiliated with Woodbridge Group of Companies, LLC to Produce Documents to SEC

The Securities and Exchange Commission has filed a subpoena enforcement action against 235 limited liability companies (the “LLCs”) based in Delaware and Colorado seeking an order requiring the production of documents.

According to the SEC’s application and supporting papers, filed in federal court in Miami:

  • The SEC is investigating whether Woodbridge or others have violated, or are violating, the antifraud, broker-dealer and securities registration provisions of the federal securities laws in connection with Woodbridge’s receipt of over $1 billion of investor funds from thousands of investors nationwide.
  • The LLCs appear to have engaged in financial transactions with the Woodbridge Group of Companies, LLC, of Sherman Oaks, California, and may be owned and/or controlled by Woodbridge’s President, Robert Shapiro.
  • As part of the SEC’s ongoing investigation, on August 16 and 17, 2017, agency staff in the Miami Regional Office served each of the LLCs, through their registered agents, with subpoenas seeking the production of documents which identify corporate membership and financial account information.
  • The SEC’s application alleges that, although the LLCs were required to produce these documents by August 30 and 31, to date, they have failed to produce any documents.

The SEC’s application seeks an order from the federal district court compelling respondents to comply with the SEC’s subpoenas. This is the SEC’s second subpoena enforcement action in its continuing fact-finding investigation which, to date, has not concluded that any individual or entity has violated the federal securities laws.