Legal Briefs
ISO Pretending to be Funder May Be Sent to Jail
October 14, 2018
A New York Supreme Court judge ordered on Thursday that Long Island-based ISO JTT Funding either be fined or sent to prison if it does not comply with a previous restraining order obtained by NYC-based funder Accel Capital. Accel alleges that JTT funding has been impersonating it through correspondence and on contracts, a scheme that […]
View PostCapital Stack Hit With Class Action Lawsuit
October 10, 2018
A class action lawsuit brought by former employees of Capital Stack, LLC was filed in federal court on Tuesday for damages resulting from alleged labor law violations. David Rubin, Brian Stulman, eProdigy ACH, LLC, and eProdigy Operations, LLC are also among the named defendants. Capital Stack is a merchant cash advance company based in New […]
View PostFinancial Advisors Sued For Selling 1st Global Capital Investments
October 2, 2018
Brothers Anthony and Michael Pellegrino and their firm Goldstone Financial Group have been hit with a class action securities fraud lawsuit relating to their sale of 1st Global Capital investments. According to the plaintiff, Goldstone promoted 1st Global on TV in Chicago and at events they hosted at restaurants, which convinced him to invest the […]
Renaud Laplanche Barred From the Securities Industry
September 28, 2018
Renaud Laplanche, 1 month before he resigned from LendingClub at the LendIt USA 2016 conference in San Francisco, California, USA on April 11, 2016. (photo by Gabe Palacio) The SEC announced today that it charged LendingClub Asset Management, formerly known as LendingClub Advisors LLC (LCA), and its former president and co-founder Renaud Laplanche, with fraud […]
War on Debt Settlement Continues: 16 Defendants Sued in RICO Case
September 6, 2018
Fourteen individuals and two companies (including Decision One Debt Relief) were sued by Funding Metrics in Federal court last month for allegedly “conducting a nationwide illegal debt restructuring scheme through numerous acts of mail and wire fraud.” The suit, which stems from the defendants’ interference with Funding Metrics’ merchant cash advance customers, makes six claims, […]
How 1st Global Capital Enticed Investors
August 29, 2018
1 Global Capital LLC (1st Global Capital) used a network of sales agents, including barred brokers, registered and unregistered investment advisers, to find new people to invest in the company’s merchant cash advance deals, according to an August 23 Securities and Exchange Commission (SEC) complaint unsealed today. The complaint said that through April 2018, 1st […]
1st Global Capital Charged With Fraud by SEC
August 29, 2018
Securities & Exchange Commission building The Securities & Exchange Commission unsealed a 10-count complaint against 1 Global Capital LLC (“1st Global Capital”), its owner Carl Ruderman, and related parties on Wednesday. The South Florida firm “fraudulently raised more than $287 million from more than 3,400 investors to fund its business offering short-term financing to small […]
MCA Companies Have Won a “Sh*t Ton” of Cases, Judge Declares
August 27, 2018
A judge in Buffalo, New York has finally had enough with merchants trying to claim that merchant cash advances are loans. At issue were defendants who sought to overturn a confession of judgment filed by SOS Capital. The Honorable Catherine Nugent Panepinto, who presided over the case, didn’t like that one bit, but what was […]
Two Commercial Finance Consultants Charged By SEC in Ponzi Scheme
August 22, 2018
Two commercial finance consultants were charged by the SEC earlier this week for their alleged role in soliciting investors to place their savings into mortgage-backed securities issued by Woodbridge Group of Companies, LLC, a company revealed to be a $1.2 billion ponzi scheme. Barry Kornfeld and Ferne Kornfeld of Parkland, Florida, allegedly earned $3.7 million […]
Merchant Cash Advance Company Wins in Bankruptcy Court After Judge Rules It’s an Ordinary Part of Business
August 21, 2018
Last week, a bankruptcy judge in the Northern District of Illinois ruled that a merchant had used so many merchant cash advances that it had become a normal part of their business. At issue was Network Salon Services, a business founded in 2004 that was brought back from the brink of insolvency in January 2013 […]
