Sherman Oaks Developer Charged in $1.3B Ponzi Scheme

LOS ANGELES, CA — The head of a Sherman Oaks firm known for developing luxury and celebrity real estate in Los Angeles has been accused of masterminding, a $1.3 billion Ponzi scheme. Federal officials allege the massive scheme bilked thousands of investors of their retirement savings.

Robert Shapiro, 61, the owner of the Woodbridge Group of Companies and two other company executives were accused of conspiracy to commit mail and wire fraud and other violations of federal law in an indictment unsealed in the Southern District of Florida, according to the Department of Justice. The firm is famous for its ownership of high-end real homes valued as high as $150 million, including the Holmby Hills Owlwood estate formerly owned by actor Tony Curtis and Sonny and Cher, according to the Los Angeles Times.

Shapiro (not the famed attorney of the same name) of Sherman Oaks, Dane R. Roseman, 35, of Encino and Ivan Acevedo, 42, of Chatsworth were arrested in California and pleaded not guilty in federal court in Los Angeles. Roseman and Acevedo were released on bond, while Shapiro -- not to be confused with L.A. celebrity attorney Robert L. Shapiro -- remained in custody.

Ryan O'Quinn, Shapiro's attorney, said his client "denies the allegations in the indictment and will vigorously defend himself in the appropriate forum."

Prosecutors said a Ponzi scheme was orchestrated from Woodbridge's offices throughout the United States, including in Sherman Oaks, where it is headquartered, and in Boca Raton, Florida, where it was previously headquartered.

High-pressure sales tactics were used to secure money for what were promised to be "low risk" and "conservative" investments, but in reality the funds were funneled to real estate owned by Shapiro, according to the U.S. attorney's office. The Times reported.

The indictment alleged that the wrongdoing caused most of the Woodbridge companies to file Chapter 11 bankruptcy, which prosecutors said caused investors to suffer substantial losses on their $1 billion in principal. At least 2,600 victims invested their retirement savings, totaling about $400 million, the U.S. attorney's office said.

Shapiro siphoned off $35 million for his own benefit, according to prosecutors, spending $3.1 million for chartering private planes and travel, $6.7 million on a home, $2.6 million on home improvements, $1.8 million on personal income taxes, $1.4 million to his ex-wife, and more than $672,000 on luxury automobiles, The Times reported.

The case has drawn attention because of some of the luxury properties owned by Woodbridge.

A document filed by Woodbridge in its 2017 bankruptcy case said the company, through limited liability companies, owned 138 properties ranging in value from $50,000 to $150 million. A Woodbridge representative said at the time that about 50 of those properties are in the Los Angeles area, and most of the rest in Colorado, according to The Times.

City News Service and Patch Staffer Paige Austin contributed to this report.