Huge Fraud — and I warned you!
Several times in the past few years people have asked about "commercial mortgage" and "bridge loan" investments like those offered by Woodbridge Investments. I told you they were "too good to be true" -- that the high yields couldn't possibly reflect the true risk. Now, in a front page article today, the Wall Street Journal has called this a "giant Ponzi scheme" in which investors lost nearly $1billion! See links below.
Terry Says
Here's a link to the warning I gave two years ago in an "Ask Terry" Q&A -- a warning to avoid these deals. And, here's a link to today's Wall Street Journal article about Woodbridge Investments, describing this massive fraud. (You may need to be a subscriber to the WSJ to access this article.) In December, 2017 the SEC sued the firm and froze its assets. The article details the shady backgrounds of many people involved in pulling off this scam. Sadly, among those noted is financial writer Jordan Goodman who promoted these products. The article says he doesn't face any regulatory action. When I warned about this deal I reminded my readers of the "chicken money mantra": I'm not so concerned about the return ON my money, as I am about the return OF my money! Now, you know exactly what I mean.
