legal expert says that the investor lawsuit into an alleged Ponzi scheme by Woodhill Capital likely triggered a federal investigation

WILLIAMSVILLE, N.Y. — The collapse of an alleged Ponzi scheme orchestrated by Woodhill Capital on March 10 quickly led to a lawsuit by 14 investors that lost more than $13 million. That lawsuit was filed on April 3.

Now, a legal expert that spoke with Panorama Hispano News believes that the investor lawsuit likely led to the federal investigation that sparked a court-ordered search of Woodhill Capital on April 7.

This one’s interesting to me because you first had a private lawsuit that was preceding the criminal investigation, that’s a flipped order,” said Christine Bartholomew, a professor of law at the University at Buffalo. “Usually we end up seeing these criminal investigations and then what we call tag-along or follow-on lawsuits.”

Bartholomew continued, “that means that the investors themselves are probably the instigators of the actual investigation.”
The lawsuit alleges that Woodhill Capital defrauded investors by manipulating, or even fabricating, investment opportunities. The company claims on its website that they provide financing for businesses that need office, construction, or logging equipment.

“Sadly, it is pretty textbook in its allegations,” Bartholomew said.