Legal Briefs

“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 & […]

View Post

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 […]

View Post

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 […]

View Post

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 […]

View Post

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 […]

View Post

War on Debt Settlement Continues: 16 Defendants Sued in RICO Case

September 6, 2018
Article by:

war

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, […]

View Post

How 1st Global Capital Enticed Investors

August 29, 2018
Article by:

Hallandale Beach

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 […]

View Post

1st Global Capital Charged With Fraud by SEC

August 29, 2018
Article by:

SEC Building

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 […]

View Post

MCA Companies Have Won a “Sh*t Ton” of Cases, Judge Declares

August 27, 2018
Article by:

welcome to buffalo

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 […]

View Post

Two Commercial Finance Consultants Charged By SEC in Ponzi Scheme

August 22, 2018
Article by:

SEC Building

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 […]

View Post