Legal Briefs

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, […]

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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 […]

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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 […]

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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 […]

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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 […]

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Merchant Cash Advance Company Wins in Bankruptcy Court After Judge Rules It’s an Ordinary Part of Business

August 21, 2018
Article by:

bankruptcy court

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 […]

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World Global Financing Bankruptcy Converted to Chapter 7

August 9, 2018
Article by:

bankruptcy court

Florida-based World Global Financing (WGF), who filed for Chapter 11 in May, has been ordered into liquidation following their failure to abide by the settlement agreement with Eaglewood SPV I LP. Eaglewood’s claim on WGF comprised 98% of all creditor claims. WGF agreed to settle with Eaglewood for $2.95 million, but WGF failed to make […]

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Details Emerge in Florida Lawsuit Against Corporate Debt Advisors

August 9, 2018
Article by:

debt cure

A debt settlement company being sued by Itria Ventures in Miami-Dade County, FL was asked to prove its claim that it has managed over $1.5 billion in total debt, court records show. That company, Corporate Debt Advisors (CDA), advertises that it provides debt relief for small business owners. CDA responded to Itria’s request on June […]

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Notorious Tampa Bay Loan Broker Likely Headed Back to Jail

July 27, 2018
Article by:

Victor Clavizzao

Tampa Bay loan broker Victor Clavizzao pleaded guilty this week to one count of wire fraud, which could land him in prison for up to 20 years. This would not be his first time behind bars. In 2009, a federal judge sentenced him to five years for conspiring to fraudulently obtain nearly $6 million in […]

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JTT Funding STILL Impersonating Rival Funding Company, Court Docs Allege

July 26, 2018
Article by:

imposter

A Court-ordered injunction hasn’t prevented New York ISO JTT Funding from continuing to pretend to be Accel Capital, a new motion filed in New York County this week argues. In May, JTT Funding failed to appear in court to defend itself against claims it was impersonating Accel Capital when contracting with merchants. After reviewing the […]

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