The majority of the prison sentence — 20 years — is for defrauding those investors, and for committing wire and mail fraud. The 61-year-old was sentenced to an additional five years for failing to pay $6 million in taxes owed between 2000 and 2005.
To raise money for the fraud, Woodbridge Group promised investors — many of them elderly — that the cash would go toward building and buying luxury properties that would yield high returns. Instead, Shapiro and the company bought those properties themselves through a web of legal entities to obscure ownership.sites in Los Angeles
and across the country. It paid out investors using cash from new investors in a classic Ponzi scheme arrangement. Shapiro himself siphoned off between $25 million and $95 million to fuel his glitzy lifestyle, prosecutors said. The case against him took place in Miami, as did the sentencing.At least 2,600 Woodbridge investors put their retirement savings into the firm, totaling $400 million, according prosecutors. Shapiro personally spent at least $3.
Shapiro and his wife agreed to forfeit a massive trove of luxury items they purchased with misappropriated funds, including artworks by Picasso and other artists, a 603-bottle wine collection, and several pieces of diamond jewelry. While the criminal case against Shapiro is over, independent managers are in charge of selling off the rest of Shapiro is also on the hook to pay the Security and Exchange Commission Federal law enforcement continues to pursue claims against other Woodbridge executives. Investors have sued for compensation from at least one bank,
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Source: Variety - 🏆 108. / 63 Read more »