The Securities and Exchange Commission filed civil charges yesterday against 1 Global Capital LLC and its former CEO alleging they defrauded approximately 3,400 retail investors, a number of whom invested their retirement monies. Global Capital, which was engaged in the cash advance business, and Carl Ruderman, its former CEO, are alleged by the SEC to have raised in excess of $287 million through fraudulent means since 2014, utilizing a web of barred brokers who sold unregistered securities.
Per the SEC’s complaint, while investors were promised profits generated from 1 Global’s loans to companies, a material percentage of their investment funds went to fund Ruderman’s personal expenditures and to his unrelated, consumer-loan companies. The SEC further contends that Global 1 investors received false and misleading account statements and were duped into believing that 1 Global had an independent auditor and that its secured loans rarely defaulted. In truth, the SEC claims, 1 Global made large loans on an unsecured basis and had serious collection problems. 1 Global filed bankruptcy in July.
If you invested in 1 Global through a licensed stock-broker or financial advisor, you may have a legal claim to recover your investment losses against the broker’s or advisor’s employing firm through FINRA arbitration. Securities brokerage firms can be held legally responsible for the fraudulent and negligent acts of its employees, and for failure to reasonably supervise their activities.
Call securities fraud lawyer David Chase for a confidential, no-cost consultation about your ability to recover your investment losses at: (800) 760-0192 or at: firstname.lastname@example.org. David Chase, a former SEC Prosecutor, is the principal of the SEC law firm, David R. Chase, PA, based in Fort Lauderdale, Florida.