After Woodbridge Declares Chapter 11Bankruptcy and Many Aspen Creditors Emerge; Janckila Construction of Carbondale Alleges that It is Owed $527,223
Los Angeles is known for its Hollywood stars and big mansions and people know Aspen for its posh snow resorts. Reports of creditor disputes have emerged after Woodbridge Group of Companies, a developer of high-end properties, filed Chapter 11 bankruptcy, according to Reports from a Delaware bankruptcy court under review by attorneys Alan Rosca and James Booker.
Peiffer Rosca Wolf securities practice lawyers are investigating sales practices of investment professionals who recommended and sold Woodbridge to investors.
Woodbridge Mortgage Investment Fund investors who believe they may have lost money are encouraged to contact attorneys Alan Rosca or James Booker with any useful information or for a free, no obligation discussion about their options.
The Woodbridge Group of Companies was allegedly developing properties in the Roaring Fork Valley and elsewhere, and has declared Chapter 11 bankruptcy protection following an investigation by the SEC, according to Reports from Colorado.
Woodbridge’s Chapter 11 petition allegedly states that it has between 10,001 and 25,000 creditors, according to the aforementioned reports from a Delaware bankruptcy court. In sum, Woodbridge is allegedly $750 million in debt, while it “will continue to operate as before through the Chapter 11 proceedings”, according to the SEC.
In Colorado, some of the alleged creditors allegedly include the city of Aspen’s Utilities Department, two Aspen law firms, architectural firms, the Pitkin County Republicans, and other companies and individuals, according to the aforementioned Reports.
Of the group of 30 creditors with the allegedly largest unsecured claims, one entity— Janckila Construction of Carbondale, Colorad, is allegedly owed $527,223, according to Reports from Colorado.
One Janckila official allegedly made the claims that the aforementioned debt is “erroneous, and it is our understanding that we will be removed in due time”, according to Reports from Colorado
Woodbridge has many local listings in Colorado, including an $11.75 million home for sale in Snowmass Village, a $2.7 million home in Aspen, and up to five homes priced over seven figures in Carbondale, among other properties, according to the company’s web site.
Woodbridge, according to Reports from Colorado, has reportedly made the following statement regarding its properties in Colorado:
“Woodbridge will close the sales office at the end of the month. Our remaining properties will be listed with local brokers. We will continue to sell, hold and develop land in Aspen Glen, based on market conditions.”
Most of the remaining creditors are mainly in the Los Angeles area, and Woodbridge is based in Sherman Oaks, California, the Reports note.
The Colorado Securities Commissioner Announces an Investigation into Woodbridge Mortgage Investment Funds for Allegedly Selling “unregistered securities, soliciting of securities by unlicensed representatives”; Over 450 Colorado Investors have Allegedly Put $57 Million into Woodbridge through October 12
The closure of the Aspen Glen estate follows the SEC’s investigation into Woodbridge for alleged fraud, according to the aforementioned Reports under review by attorneys Alan Rosca and James Booker.
Henceforth, the Colorado Securities Commissioner also allegedly announced that it was investigating Woodbridge Mortgage Investment Funds, a Woodbridge affiliate, for allegedly selling “unregistered securities, soliciting of securities by unlicensed representatives, and fraudulent statements and omissions of fact related to the sale of securities”, according to Reports from Colorado.
In sum, over 450 Colorado investors have allegedly sunk over $57 million into Woodbridge through October 12, according to the Colorado securities commissioner.
What is more, very similar probes are underway in Arizona, Massachusetts, Michigan, Pennsylvania and Texas, according to said Reports.
Woodbridge has allegedly said the bankruptcies are the result of the cost of doing business, the ongoing investigations, and the inability to pay its one-year notes to investors as scheduled, according to a statement from Woodbridge.
Furthermore, Robert Shapiro, who resigned as Woodbridge’s chief executive officer on Friday, gained attention last year when he bought the Owlwood Estate in Los Angeles, the storied former home of stars such as Tony Curtis and Cher, for $90 million.
No allegations of misconduct are being made against Woodbridge in this blog.
Woodbridge Securities Sales Practices Investigated by Securities Lawyers
The Peiffer Rosca Wolf securities lawyers often represent investors who lose money as a result of investment-related fraud or misconduct and are currently investigating sales practices involving the Woodbridge Mortgage Investment Fund securities. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Woodbridge investors who believe they lost money as a result of their investments in Woodbridge may contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or James Booker, for a free no-obligation evaluation of their recovery options, at 888-998-0520 or via e-mail at email@example.com or firstname.lastname@example.org.