|08/02/2021||1 Global Capital update from DOJ|
|12/15/2020||New SEC charges related to 1 Global Capital|
|08/19/2019||1 Global Capital|
|08/15/2019||DOJ: 1 Global Capital CFO charged|
|06/10/2019||1 Global Capital case moving along|
Top 10 Things of 2019
Another Attorney Charged Criminally in 1 Global Capital SagaSeptember 29, 2020
Andrew Dale Ledbetter, a veteran securities attorney who once co-authored a book called How Wall Street Rips You Off – and what you can do to defend yourself, now stands accused of ripping investors off.
Ledbetter was criminally charged on Tuesday by the US Attorney’s office in South Florida for his alleged role in the 1 Global Capital Securities fraud case. Ledbetter was formally accused of Conspiracy to Commit Wire Fraud and Securities Fraud. He was simultaneously hit with civil charges by the Securities and Exchange Commission.
Both agencies say that Ledbetter reaped nearly $3 million in referral fees from 1 Global Capital in exchange for raising nearly $100 million from investors, mostly retirees, all while making knowingly false statements and misrepresentations about the investments. For instance, they say that he knew the investments were securities but claimed they weren’t anyway. Similar circumstances brought down Florida attorney Jan Douglas Atlas last year. Ledbetter had been compensating Atlas on the side as part of the alleged scheme.
Ledbetter is the 4th individual to be criminally charged in connection with the 1 Global Capital case. The other three: Atlas, Alan G. Heide, and Steven Schwartz, have all already pled guilty.
Former 1 Global Capital CFO Alan Heide Sentenced to 5 Years in PrisonJanuary 17, 2020
Alan Heide, the former CFO of defunct Hallandale Beach-based 1 Global Capital, was sentenced to 5 years in prison earlier this week for his role in the company’s securities fraud. He is one of three individuals that have pled guilty so far and the first to be sentenced.
The other individuals, attorney Jan Douglas Atlas and former 1 Global COO Steven Allen Schwartz are awaiting their sentencing.
Additional individuals are still expected to be charged.
SEC, US Attorney Charge Steven A. Schwartz in 1 Global Capital CaseJanuary 6, 2020
New criminal and civil charges have been filed against an individual in the 1 Global Capital case. This time it’s Steven A. Schwartz, who served as 1 Global’s Director and Chief Operating Officer.
The SEC alleges that Schwartz aided and abetted former CEO Carl Ruderman in carrying out a securities fraud.
The US Attorney for the Southern District of Florida separately alleged that Schwartz engaged in a conspiracy to commit wire fraud and securities fraud.
Schwartz is the third person to be charged criminally in connection with 1 Global Capital’s scheme. Alan Heide and Jan Atlas already pled guilty to their roles in the fraud.
The SEC said of its case against Schwartz:
The complaint further alleges that Schwartz became trustee of a Ruderman family trust in June 2014, and that shortly afterwards, Ruderman had Schwartz execute an agreement conveying ownership of 1 Global to the trust. As alleged, until 1 Global declared bankruptcy in July 2018, Schwartz allowed Ruderman to use the trust to misappropriate several million dollars in investor funds to pay for Ruderman’s luxury lifestyle.
Sentencings in 1 Global Capital Criminal Cases DelayedDecember 18, 2019
The sentencing dates for the two individuals that pled guilty for their part in the the 1 Global Capital mess, have been delayed. Jan Douglas Atlas’s sentencing has been pushed back until March 2020 with a date to be determined, while Alan Heide’s has been rescheduled to Jan 14, 2020.
Investors Receive Recovery Checks in 1 Global Capital CaseDecember 9, 2019
For all the noise surrounding the collapse of 1 Global Capital, investors recently recovered nearly $112 million, equating to about 40 cents on the dollar so far.
“We continue to pursue collections where we can and legal actions where we can, and we’re working to see what else we can garner for the estate,” 1 Global’s trustee told the SunSentinel.
The sizable recovery thus far could probably be attributed to the large outstanding A/R the company had on its books. Although prosecutors have characterized 1 Global as a ponzi scheme, the company did legitimately engage in the business it claimed to and it had amassed a massive portfolio of receivables. 1 Global also still had a significant amount of cash on hand when it declared bankruptcy last year, a move it undertook mainly because parallel investigations from the SEC and US Attorney’s office had become paralyzing.
Approximately 3,750 investors have been paid out.
More Individuals Expected to Be Criminally Charged in 1 Global Capital CaseNovember 30, 2019
Federal prosecutors have asked a Court to consolidate criminal cases against 1 Global Capital defendants Alan Heide and Jan D. Atlas on the basis that there is substantial overlap between them and that additional individuals are expected to be charged. “Considerable judicial resources may be conserved if, going forward, a single judge is chosen to preside over all 1 Global-related cases,” prosecutors argue. The number of forthcoming defendants was not revealed but has been described as “multiple additional co-conspirators.”
The case, far from over, is being characterized as an active investigation.
Heide, 1 Global’s former CFO, pled guilty on August 23, 2019. He is scheduled to be sentenced on December 18th. Atlas, an attorney who provided fraudulent legal cover for 1 Global via knowingly false opinion letters, pled guilty to 1 count of securities fraud in October. He is scheduled to be sentenced on January 10th.
Hallandale Beach-based 1 Global Capital was once ranked among the largest alternative small business funders by deBanked. That all changed in July 2018 with a sudden bankruptcy filing that revealed concurrent investigations being carried out by the SEC and a US Attorney’s Office.
Prosecutors are calling the company a multi-faceted securities fraud and Ponzi scheme that victimized at least 3,600 investors across the country. While the company took in more than $330 million, $100 million of it is expected to be returned to investors through a bankruptcy court liquidation.
The company’s former chairman and CEO has already consented to judgment with the SEC and agreed to be liable for disgorgement of $32,587,166 + $1,517,273 in interest and a civil penalty of $15,000,000. Shortly thereafter, the SEC reported that he had satisfied the judgment in full with the exception of the stipulation that he sell his condo. Although he has not been criminally charged, prosecutors say that Heide and Atlas both ultimately took direction from, and reported to the company’s former chairman and CEO.
Individuals familiar with the firm may recall that 1 Global Capital was previously reported as being named 1st Global Capital. However, another company bearing the same name sued them for trademark infringment. Since then, news related to the South Florida ponzi scheme have referred to the company by its legal name, 1 Global Capital, LLC.
Attorney Pleads Guilty In 1 Global Capital Securities Fraud MessOctober 25, 2019
Jan Douglas Atlas, a Florida attorney that was arrested last month for his role in the 1 Global Capital debacle, entered a plea of guilty on Wednesday to 1 count of securities fraud. 74-year-old Atlas also agreed to be disbarred.
The charges stem from his willingness to sign an opinion letter that claimed investment opportunities being offered by 1 Global were not securities when he knew that they actually were.
1 Global collapsed last year amid investigations by the SEC and US Attorney’s office and the discovery of a massive discrepancy in the company’s accounting records. Atlas is the 2nd person to be criminally convicted. 1 Global’s chairman consented to judgment with the SEC but has not been criminally charged. Court records indicate he has already satisfied the vast majority of the SEC’s judgment.
The set of facts established by prosecutors and Atlas in his guilty plea suggest that additional individuals could still be criminally charged.
Prominent Attorney Criminally Charged In 1 Global Capital MessSeptember 17, 2019
Another individual has been criminally charged in connection with the 1 Global Capital securities case. 74-year-old Jan Douglas Atlas, a securities attorney, was charged with 1 count of securities fraud by the US Attorney in South Florida on Tuesday for authoring opinion letters in 2016 that falsely described that the investments were not securities nor subject to federal securities laws or registration requirements.
The charges allege that Atlas “came to understand” that individuals representing 1 Global were not interested in accurate legal advice based on real facts and that they instead wanted false legal cover that would advance the desired outcome to continue to profit from 1 Global. He allegedly made false and misleading statements despite knowing the true nature of how the investments worked and that they were in fact securities as defined under federal securities laws.
“Atlas’s opinion letters were used and relied upon by 1 Global employees and agents to continue to raise money illegally,” the Department of Justice said in an announcement.
Atlas was also compensated by receiving a percentage of the commissions generated from the fundraising scheme to the tune of $627,000 paid to his personal checking account. These payments were not disclosed to his employer, Kopelowitz Ostrow, as required.
Atlas was also separately charged by the SEC.
His employer was not charged with any wrongdoing in either action. Atlas was previously listed as a partner at the firm but is no longer on the firm’s website.
Atlas is the second individual to be criminally charged in connection with 1 Global Capital. The first individual, Alan Heide, who served as 1 Global Capital’s CFO, pleaded guilty to conspiracy to commit securities fraud. He is scheduled to be sentenced on December 12th.
1 global capital llc (“1stglobal capital”) to investors., , guys, this has nothing to do with mca brokers. this relates to brokers that brought in investor money (which was then misused). , , no one is claiming 1st global or its broker’s defrauded merchants. this is about them misleading investors....
1 global capital llc (“1stglobal capital”) to investors., the sec announced chargeson august 29, 2018 against 1st global capital and its former ceo for allegedly defrauding at least 3,400 retail investors, more than one-third of whom invested their retirement funds., investors were allegedly promised low-risk, high-return investments that 1st global would use to fund merchant cash advance deals, according to the complaint. further, the sec alleges the owner of the company misappropriated $35 million of the funds, paying a lot of it to himself and companies he controlled., according to reports, 1 global capital llc, (R...
Who Got a letter about the First Global Lawsuit...
1 global capital llc (1stglobal capital) to investors., the sec announced chargeson august 29, 2018 against 1st global capital and its former ceo for allegedly defrauding at least 3,400 retail investors, more than one-third of whom invested their retirement funds., investors were allegedly promised low-risk, high-return investments that 1st global would use to fund merchant cash advance deals, according to the complaint. further, the sec alleges t...