Legal Briefs
Coming Soon: The End of Confession of Judgments (COJs) in New York State
January 16, 2019
New York State plans to outlaw the use of Confession of Judgments (COJs) in small business loan contracts this year, according to details revealed in Governor Andrew Cuomo’s newly published Justice Agenda. The proposal, dubbed “Stopping Predatory Merchant Cash-Advance Loans,” is a 3-part plan to: Codify an FTC rule that prohibits COJs in consumer loans […]
View PostTrial of Debt Settlement Mastermind Sergiy Bezrukov Postponed, Again
January 13, 2019
The trial of debt settlement mastermind Sergiy Bezrukov has been postponed until April 1, 2019, court records indicate. The planned January 14 start date was just the latest in a series of postponements. Bezrukov is charged with conspiracy to defraud, mail fraud, wire fraud, bank fraud, and money laundering. The charges carry a maximum penalty […]
View PostFormer Merchant Cash Advance CFO Charged With Fraud by New York Attorney General
January 4, 2019
A former merchant cash advance CFO and executive for a fund that provides capital to merchant cash advance companies, has been charged with fraud by the New York Attorney General. The allegations against Stephen Brown stem from his role as CFO of Cardis Enterprises International, a company that claimed to possess patented and proprietary technology […]
Kornfelds Settle With SEC Over Woodbridge Ponzi Scheme
January 3, 2019
Barry M. Kornfeld and Ferne Kornfeld, both fundraising agents for 1st Global Capital, have settled with the SEC for their role in Woodbridge Group of Companies LLC, a $1.2 billion ponzi scheme. Woodbridge was another Florida-based company that is unrelated to 1st Global Capital. As part of the settlement, the Kornfelds agreed to disgorge $3.69 […]
Defunct MCA Company Tried to Escape Signed Confession of Judgment
December 13, 2018
When a Florida-based merchant cash advance company, World Global Financing (WGF), declared bankruptcy this past May, it entered into a binding settlement agreement with its largest creditor, a hedge fund known as Eaglewood. There was a caveat. Eaglewood required that WGF sign a Confession of Judgment (COJ) as part of the agreement that would afford […]
1st Global Capital Consents With SEC
November 28, 2018
Subject to approval in two courts, 1 Global Capital LLC (aka 1st Global Capital) has confirmed it will consent with the SEC to be permanently enjoined and restrained from violating securities laws. The papers were submitted to the Court yesterday. Though the terms include 1st Global Capital’s California counterpart, 1 West Capital, LLC, there is […]
Who Are the New York City Marshals?
November 28, 2018
In 2017, New York City Marshal Ruth Burko earned less in poundage than she owed the city in annual fees. At 91-years old, Burko’s tenure as a city licensed judgment enforcer has finally come to an end. She technically announced her retirement at the end of 2016 but her long career began when Mayor John […]
1st Global Capital’s Bankruptcy Costs
November 25, 2018
Attorneys have spent 1,9234.20 hours on the 1st Global Capital bankruptcy, a recent fee application reveals. Excluding reimbursements, attorneys at Greenberg Traurig, LLP submitted a bill for $1,028,136.20 over a 3 month period for operating the company as debtors-in-possession. Meanwhile in the SEC case last week, the Court ordered to expand receivership over the Ruderman […]
SEC Scoffs at 1st Global Capital’s Attempt to Dismiss Securities Complaint
November 17, 2018
The SEC is not impressed with 1st Global Capital’s attempt to dismiss the charges it stands accused of. Yesterday, the SEC filed opposition papers, writing “Having defrauded thousands of investors out of almost $300 million, Defendant Carl Ruderman now asks the Court to let him escape the consequences of his actions by dismissing the Amended […]
“Out Of State” MCA Funder Not Precluded From Entering COJs in New York, Court Rules
October 18, 2018
In May 2017, Funding Metrics (FM), a small business funding provider, entered a signed Confession of Judgment (COJ) in Westchester County, NY against a California-based customer. The Court issued a judgment a mere five days later. That should have been the end of it, but on July 26th, the customer hired law firm White & […]
