William A. Shopoff Allegedly Failed to Pay Investors $31 Million & Allegedly Fraudulently Transferred Assets to So-called Shell Entities
William A. Shopoff, president and CEO of Irvine-based Shopoff Realty Investments, is reportedly facing accusations that he neglected to pay investors $31 million and that he allegedly fraudulently transferred assets to shell entities to avoid covering the debts,, according to Court Documents under review by investor rights attorney Alan Rosca.
William Shopoff also faces two lawsuits, and is looking at a disciplinary action by FINRA, FINRA notes.
Shopoff Realty Investments makes investor funds to finance commercial and residential real estate ventures from Newport Beach to Chicago and North Carolina, and several of William Shopoff’s projects are mixed-use developments such as the 25-acre Uptown Newport Village. Shopoff also sold a 624-unit apartment complex in Las Vegas for $100 million back in March.
Respondent Shopoff Securities is a captive registered broker-dealer with its principal place of business in Irvine, California. Respondent William Shopoff founded the Firm in September 2006 and it became registered with FINRA in May 2007, FINRA notes.
Investor rights attorney Alan Rosca, of the Goldman Scarlato & Penny PC law firm, is investigating activity related to Shopoff Realty Investments, William Shopoff, and Stephen Shopoff’s alleged involvement with the fraudulent sale of promissory note investments. Investors who believe they may have lost money in activity related to Shopoff Realty Investments, William Shopoff, and Stephen Shopoff’s alleged involvement with the fraudulent sale of promissory note investments are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.
Shopoff Realty Investments Allegedly Took Part in the Fraudulent Sale of $12.57 Million of Promissory Note Investments to 29 Investors
Shopoff Securities, Inc. via two of its officers, President and Chief Executive Officer William A. Shopoff and his brother, Senior Vice President for Investor Relations Stephen R. Shopoff, from about December 2010 through March 2017, allegedly made fraudulent sales of approximately $12.57 million of promissory note investments to 29 investors, according to a Complaint from FINRA’s Department of Enforcement.
The aforementioned notes were issued by two Firm affiliates that were owned by William Shopoff, purportedly to fund his private real estate firm, the Complaint states.
Shopoff Securities, Inc. is an Orange County-based developer, and also allegedly failed to disclose that $165,000 investment proceeds would actually be transferred to William Shopoff and his personal trust to pay his and his wife’s personal expenses, FINRA notes.
In addition, from at least August 2014 through August 2016, Shopoff Securities and William Shopoff allegedly fraudulently sold two private placement offerings which were allegedly sponsored by William Shopoff‘s private real estate firm, FINRA notes.
Shopoff Securities, via William Shopoff, also allegedly massively inflated he and his wife’s cash assets in a financial statement given to a third-party due diligence provider assessing the Shopoffs’ financial wherewithal, the Complaint states.
Shopoff Securities and William Shopoff allegedly thereby allegedly willfully violated Securities Exchange Act and FINRA Rules, FINRA states.
Shopoff Securities, William Shopoff and Stephen Shopoff therefore, based on the alleged aforementioned accusations, allegedly willfully violated Securities Exchange Act and FINRA Rules, the Complaint states.
William and Stephen Shopoff allegedly were involved with the following investment programs, according to the Goldman Scarlato & Penny attorneys’ investigation:
- ▪ Shopoff Commercial Growth & Income Fund II, L.P.
- ▪ Shopoff Commercial Growth & Income Fund III, L.P.
- ▪ Shopoff Land Fund I L.P.
- ▪ Shopoff Land Fund II L.P.
- ▪ Shopoff Land Fund III L.P.
- ▪ Shopoff Land Fund IV L.P.
- ▪ Shopoff Land Fund V L.P.
- ▪ Shopoff Land Fund VI L.P.
- ▪ Shopoff Strategic Income Fund, L.P.
- ▪ Shopoff Properties Trust, Inc.
- ▪ TSG Fund IV
- ▪ TSG Fund V
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints mentioned in this article, unless otherwise indicated.
Securities Lawyer Investigating
The Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Shopoff Realty Investments, William Shopoff, and Stephen Shopoff’s alleged involvement with the fraudulent sale of promissory note investments. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, and has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of Shopoff Realty Investments, William Shopoff, and Stephen Shopoff’s alleged involvement with the fraudulent sale of promissory note investments may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at email@example.com, or through the contact form on this webpage.