Woodbridge, according to the SEC, told investors it would use their money to make so-called “hard money” loans — a type of expensive, short-term loan that’s secured by property and is often used by house flippers and other property developers. Instead, the SEC alleges, nearly all of the funds went directly into Shapiro’s and Woodbridge’s own projects.

Source: Los Angeles Times April 12, 2019 04:18 UTC