Legal Briefs
1 Global Capital’s Carl Ruderman Consents To Judgment With The SEC
August 10, 2019The 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 […] |
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Loan Broker Busted In Advance Fee Loan Scam Faces Drug Charges
July 20, 2019Demetrios 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. |
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Star Fundraiser For 1 Global Capital Settles With The SEC
July 15, 2019Henry 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 […] |
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Federal Lawmakers Not Convinced NY Confession of Judgment Ban is Enough
June 25, 2019The 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 […] |
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The Industrial Hemp and CBD Industries, and the Potential Risks for Merchant Cash Advance Funders
June 22, 2019
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
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
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
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
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
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
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
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
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
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
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 […]
Indicted Loan Brokers Out On Bond, 1 Still in Custody
April 5, 2019
Four of the five loan brokers indicted in a fake business loan scam that tricked an Ohio resident out of hundreds of thousands of dollars in upfront fees, have been released on bond. Only one, a defendant by the name of Haki Toplica, remains in custody. All of the defendants have entered pleas of not […]
Class Action Lawsuit Filed Against Brendan Ross, Direct Lending Investments, and Others
April 2, 2019
A class action lawsuit has been filed in California against Direct Lending Investments, LLC (DLI), Brendan Ross, Bryce Mason, Frank Turner, Rodney Omanoff, and Quarterspot Inc. alleging breach of contract, breaches of fiduciary duty, aiding and abetting breaches of fiduciary duty, and fraudulent inducement. The claims are drawn from a series of revelations that have […]
Debt Settlement Mastermind of MCA Industry Finally Caves, Pleads Guilty to Criminal Charges
March 30, 2019
The mastermind that pioneered debt settlement in the merchant cash advance industry ended his career with a whimper last week. Sergiy Bezrukov pled guilty to Conspiracy to Commit Bank Fraud and Conspiracy to Commit Money Laundering. Bezrukov has been in jail for two years awaiting trial, which had been repeatedly postponed because he kept on […]
Direct Lending Investments Charged With Fraud by the SEC
March 25, 2019
Update: DLI has agreed to the appointment of a receiver to marshal and preserve the assets of Direct Lending and the funds. The SEC has also published a press release on the matter. One of the biggest online lending hedge funds has been accused of fraud by the SEC. On Friday, the SEC sued Direct […]
Analyzing Confessions of Judgment
March 4, 2019
Platzer, Swergold, Levine, Goldberg, Katz & Jaslow, LLP (“Platzer”) has built one of the leading Merchant Cash Advance practices in New York City. With years of experience handling traditional lending transactions, Platzer has expanded its representation to Merchant Cash Advance Companies (“MCA”) in all aspects of their business cycles, including Participation Agreements, Assets Utilization, Transactional […]
