Legal Briefs

Gone with the Wind: $35 Million Missing as Payroll Company Closes and President’s Home Raided

September 18, 2019
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Knocking on the door of a lake-view house in Edinburg, NY last week, reporters from both the Times Union and Daily Mail were met with pleas from a woman to leave her property and notice that she would call 911 if they continued. This week the FBI come knocking instead. The woman is assumed to […]

Prominent Attorney Criminally Charged In 1 Global Capital Mess

September 17, 2019
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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 […]

Online Lender Wins Massive Arbitration Award After Retailer Challenged The “True Lender” Of The Loans

September 13, 2019
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An arbitrator was unconvinced by a retailer’s arguments that business loans it obtained from Celtic Bank via Kabbage were responsible for the business’s eventual failure. In 2017, NRO Boston, LLC and Alice Indelicato filed a lawsuit against Kabbage Inc. and Celtic Bank Corporation for allegedly violating Massachussetts’ usury law when the parties engaged in financing […]

Four Plead Guilty In Fake Business Loan Scheme

September 11, 2019
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Four of the five loan brokers indicted in a fake business loan scheme have pled guilty to charges. Toplica and his co-conspirators were alleged to have duped an Ohio victim out of hundreds of thousands of dollars in upfront fees, the title to 55 vehicles including a Ford Mustang, several dump trucks, several tractors, several […]

Princeton Alternative Income Fund Saga Devolves Into SEC Investigation, RICO Lawsuit

August 18, 2019
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lawyer going to the courthouse

The demise of the Princeton Alternative Income Fund has resulted in several ugly twists and turns. In addition to a slew of lawsuits, the bankrupt hedge fund is also being investigated by the Securities and Exchange Commission. Matthew Cantor, who is serving as the bankruptcy Trustee, cited the SEC’s probe as one of many reasons […]

1 Global Capital’s Carl Ruderman Consents To Judgment With The SEC

August 10, 2019
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Courtroom

The SEC’s lawsuit against Carl Ruderman, the former CEO of Hallandale Beach-based 1 Global Capital, has come to an end. He has consented to judgment in a settlement and the penalties are devastating, papers filed on friday with the Court show. Specifically, Ruderman is liable for disgorgement of $32,587,166 representing profits gained as a result […]

Loan Broker Busted In Advance Fee Loan Scam Faces Drug Charges

July 20, 2019
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Arrested

Demetrios Boudourakis, who was arrested last month for operating an advance fee loan scheme that allegedly defrauded small business owners nationwide, is also facing federal drug charges. The criminal complaint, filed on June 14th, asks for an arrest warrant for conspiring to distribute controlled substances. The complaint can be viewed here.

Star Fundraiser For 1 Global Capital Settles With The SEC

July 15, 2019
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United States Securities and Exchange commission SEC logo on entrance of DC building near H street

Henry J. “Trae” Wieniewitz, III was charged by the SEC on Monday for his role in allegedly selling unregistered securities in two companies, 1 Global Capital (the now defunct merchant cash advance provider) and Woodbridge Group of Companies (a purported real estate lending business revealed to be a $1.2 billion ponzi scheme). “Wieniewitz and Wieniewitz […]

Federal Lawmakers Not Convinced NY Confession of Judgment Ban is Enough

June 25, 2019
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US Capitol

The recent New York State law that effectively ended the era of Confessions of Judgment in the small business finance industry is apparently not enough to satiate the outrage of some federal lawmakers. This morning, Rep. Nydia M. Velázquez (D-NY) and Rep. Roger Marshall (R-KS) introduced the “Small Business Lending Fairness Act” that would outlaw […]

The Industrial Hemp and CBD Industries, and the Potential Risks for Merchant Cash Advance Funders

June 22, 2019
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Hemp Farm

Authored by Josh Herndon of Global Legal Law Firm It seems that we are constantly being bombarded by news of the growing industrial hemp and cannabidiol (more commonly known as “CBD”) industries. Indeed, industrial hemp (and products derived therefrom, such as CBD) is now legal, and these industries have experienced substantial growth that is expected […]

SEC Secures Judgment Against Direct Lending Investments

June 20, 2019
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SEC

Without admitting or denying the allegations of the complaint, Direct Lending Investments, a defunct online lending hedge fund, consented to judgment by the SEC on Tuesday. They will be required to pay a disgorgement of ill-gotten gains, prejudgment interest, and a civil penalty that has yet to be determined. Read the full judgment here

SEC, Ruderman Heading to Settlement

June 16, 2019
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SEC

The Securities and Exchange Commission’s motion for summary judgment against Carl Ruderman for his role in the 1 Global Capital case is likely to be stayed as the parties head toward a settlement. On June 14, the SEC informed the Court that “as a result of mediation and ensuing discussions, the Commission staff and Defendant […]

SEC Seeks Partial Summary Judgment Against Ruderman in 1 Global Capital Case

June 10, 2019
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United States Securities and Exchange commission SEC logo on entrance of DC building near H street

The SEC filed a motion for summary judgment against defendant Carl Ruderman last week as part of its ongoing lawsuit against 1 Global Capital and related parties. The motion applies to Ruderman on Count 1 of the SEC’s amended complaint alleging violations of 5(a) and (c) of the Securities Act of 1933 in addition to […]

MCA Company Files 15 COJs Against a Medical Practice, Dispute Arises Over Alleged Forgery

May 29, 2019
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New York Supreme Court

A New Jersey physician was one day going about his usual business, and the next day found himself an unwitting judgment debtor for almost $2,000,000 based on more than a dozen forged Confessions of Judgment (COJs) of which he had no knowledge. That’s the scenario described in papers by the physician’s attorney suing New York-based […]

Lawyers: Earn CLE Credits While Learning About Alternative Finance

May 23, 2019
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AFBA CLEe

REGISTER HERE June 13 Sessions June 14 Sessions Case Law Updates Regulatory Download: The Complete Picture TCPA: Defining ATDS, Exploring the TCPA and How Emails are Covered Legislation, Business and Lobbying: How does it work and Does it work at all? Bankruptcy Updates Future Invoice Factoring and Traditional Factoring: Can’t We All Just Get Along? […]

Injunction Sought Against MCA Company, NYC Marshal

May 16, 2019
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New York Supreme Court

Update 6/24: The matter between the parties resulted in a settlement Update 5/29: Itria now contends to the Court that the petitioner’s lien was actually terminated on October 25, 2018, thus relinquishing petitioner’s security interest. Consequentially, Itria requests that Blue Elephant withdraw its “improperly obtained” TRO as it is Itria that is the true superior […]

DLI Receiver Requests Emergency Relief to Liquidate Feeder Fund Entity

May 14, 2019
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cayman islands court house at george town

The Court House at George Town in Grand Cayman The Receiver for Direct Lending Investments is racing against the clock to protect and preserve the assets of the Cayman Islands-based vehicle used to receive foreign investments, US court records show. The commencement of a voluntary liquidation of the Cayman-entity is required before the deadline to […]

Another COJ Bill In New York Added To The Pile

May 14, 2019
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cojs

Three members of the New York State Assembly want to make it illegal for a confession of judgment to be entered in the state against non-New York debtors. The debtor would also be required to be a resident of the county in which the COJ is filed. The authors behind Bill A07500, introduced on May […]

Direct Lending Investments Had Over 950 Investors

April 16, 2019
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lawyer going to the courthouse

Documents filed in a New York Supreme Court case by the receiver managing Direct Lending Investments (DLI), revealed that DLI had more than 950 investors worldwide with collective investments on the books totaling over $780 million. For those wondering what’s happened since word of the hedge fund’s shocking demise, Bradley D. Sharp of Development Specialists, […]

Lots of Tech Buzzwords, Scary Problems

April 16, 2019
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End of the word fintech?

advanced machine-learning, algorithms, big data, streamlined, technology, consumer-friendly A federal regulator cut through the shield of fintech buzzwords on Monday when it announced that a darling of online lending valued at $2 billion, failed to properly handle rudimentary loan practices. The lender is Chicago-based Avant, who reportedly settled with the FTC for $3.85 million. According […]