Articles by deBanked Staff
deBanked CONNECT MIAMI Cyber Monday Special!
December 2, 2019
The winner of the raffle will be announced on Instagram LIVE on Wednesday, December 4th at 3pm EST.
The contest ends tonight at 11:59PM EST. So make sure you buy your Miami ticket today!
and Automatically Be Entered Into The Raffle Here
More Individuals Expected to Be Criminally Charged in 1 Global Capital Case
November 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.
Fast and Furious Funders – At The Canadian Lenders Association’s Venture Debt Summit
November 30, 2019Fast and Furious Funders was the name of a panel at the Venture Debt Summit hosted by the Canadian Lenders Association on October 23, 2019. Panelists included:
- Karanjit Bhugra, Managing Director, Deloitte Corporate Finance
- Jyotin Handa, Director of Finance, Espresso Capital
- Tanay Delima, Co-Founder, Clearbanc
- Keren Moynihan, Co-Founder, Boss Insights
You can watch the video of the panel below:
Broker Fair / Black Friday ONE-DAY ONLY Special Price
November 28, 2019
Broker Fair Returns to New York City on May 18, 2020. Take advantage of this special ONE-DAY only discount code and get 29% OFF THE EARLY BIRD PRICE. This incredible deal ends at 11:59pm EST on 11/29/19.
Broker Fair’s two previous annual events sold out in advance. Hundreds of brokers from the commercial financing, merchant cash advance, and small business lending industries will be in attendance this year. See you at Broker Fair!
Happy Thanksgiving. It’s Meme Time!
November 27, 2019Happy Thanksgiving. You know what that means! deBanked original memes! Here’s the latest:
SEE ALL THE MEMES FROM PREVIOUS YEARS!
2017 1: The State of The Industry (In Memes)
2017 2: Take a Break From Funding This Thanksgiving
2016: The History of Alternative Finance (As Told Through Memes)
2013: 10 Clues You’re Hardcore About Merchant Cash Advance
SEE ALL OF OUR PREVIOUS THANKSGIVING POSTS!
2018
2017
2016
2012
Merchant Infamous For Safari-Themed Home, Has Died
November 18, 2019
The saga of Michael Willhoit has come to an end. deBanked wrote about Willhoit in December 2018 when we learned he defaulted on nearly half a million dollars in merchant cash advance transactions and was sued by banks over $4.5 million in bad loan deals. This past June he was also indicted on 36 counts of bank fraud.
But on Sunday, Willhoit passed away of natural causes, the Springfield News-Leader reported. He was 66.
Willhoit’s local notoriety gained somewhat national interest thanks to his fully-customized multimillion dollar safari-themed home, dubbed “The African Queen.” Willhoit told a News-Leader reporter in 2016 that he spent $3 million renovating the Sprinfield, MO property including $400,000 for a 900-square-foot wood floor and $300,000 for landscaping. Other notable items on the property included:
- Two roaring lion masks
- Two 7-foot tall hand-carved wooden tusks
- An eight-legged genuine impala horn zebra-hide chair
- A 15-foot African warrior statue
- A 3,000-pound (approximately) bronze rhino
- Four gazelle taxidermy mounts
- A baboon, full-body mount
Willhoit’s criminal trial was scheduled for July 2020.
You can still view a virtual video tour of his home below:
IOU Financial Originated $41.4M in Loans in Q3, Continued Profitability
November 14, 2019IOU Financial originated $41.4M in business loans in Q3, according to the company’s latest published financial statements. The figure is a modest increase over Q2’s $38.5M. IOU also kept up its trend of profitability with net income $1M.
Shares of IOU, which trade on the Toronto Stock Exchange, are valued at around (CAD) 14 cents and equate to a market cap of approximately (CAD) $14M.
Funding Circle UK Referring Some Large Loan Applicants to Competitors
November 11, 2019Funding Circle UK has begun to refer applicants seeking an amount above their maximum loan size limit of £500,000 to Iwoca, MarketInvoice and French bank BNP Paribas, The Sunday Times reported. Previously, Funding Circle would just turn them away.
