Legal Briefs

Defunct MCA Company Tried to Escape Signed Confession of Judgment

December 13, 2018
Article by:

New York Supreme Court

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 […]

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1st Global Capital Consents With SEC

November 28, 2018
Article by:

SEC Building

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 […]

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Who Are the New York City Marshals?

November 28, 2018
Article by:

NYC

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 […]

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1st Global Capital’s Bankruptcy Costs

November 25, 2018
Article by:

1st Global Capital Bankruptcy

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 […]

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SEC Scoffs at 1st Global Capital’s Attempt to Dismiss Securities Complaint

November 17, 2018
Article by:

1st Global Capital Bankruptcy

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 […]

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“Out Of State” MCA Funder Not Precluded From Entering COJs in New York, Court Rules

October 18, 2018
Article by:

lawyer going to the courthouse

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 & […]

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ISO Pretending to be Funder May Be Sent to Jail

October 14, 2018
Article by:

Courtroom

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 […]

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Capital Stack Hit With Class Action Lawsuit

October 10, 2018
Article by:

class action lawsuit

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 […]

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Financial Advisors Sued For Selling 1st Global Capital Investments

October 2, 2018
Article by:

Courtroom

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 […]

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Renaud Laplanche Barred From the Securities Industry

September 28, 2018
Article by:

LendIt USA 2016

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 […]

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