JDI Data Corp. files for bankruptcy, to close local office

Files for Bankruptcy

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JDI Data Corp., a software firm based in Fort Lauderdale that specializes in claim, policy, and client management software, has filed for Chapter 11 bankruptcy protection and is closing its office. The firm filed for bankruptcy on Feb. 17 in the U.S District Court for the Southern District of Florida. According to court documents, the company has assets and liabilities between $1 million and $10 million. JDI Data has approximately $5.6 million in unsecured claims, with most of these debts owed to law firms.

The reason behind the bankruptcy filing was a Ponzi-type scheme allegedly orchestrated by the company’s former president and sole shareholder, James DeRosa, who used funds that were supposed to be held for the future use of clients to fund ongoing losses. A case management summary signed by Chief Restructuring Officer John Heller stated that JDI Data’s clients received statements indicating that funds were being held in trust. However, those trust accounts were eventually consolidated into a master account that DeRosa allegedly invaded.

DeRosa was terminated from JDI Data on Feb. 6, and CEO Joseph Wolczanski resigned from the company in late 2022. A lawsuit that JDI Data filed against DeRosa and Wolczanski on Feb. 18 alleged that Wolczanski also participated in the Ponzi-type scheme and the scheme to convert clients’ funds.

JDI Data had 21 employees in mid-February. The company is surrendering its leased office at 100 W. Cypress Creek Road and has not yet determined whether it will move into a smaller space. The remaining employees are working remotely.

John A. Moffa, a lawyer representing JDI Data, declined to comment on the bankruptcy case and said that the best sources of information are the pleadings and the filed adversary proceeding.

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