(HedgeCo.Net) The Securities and Exchange Commission has announced charges against an additional individual in connection with its ongoing investigation related to 1 Global Capital, LLC, a South Florida merchant cash advance company. The SEC previously charged 1 Global, its owner, and others with operating a fraudulent scheme to misappropriate millions of dollars from at least 3,600 investors. The SEC also previously charged nine of 1 Global’s top sales agents, for various registration violations.

The SEC’s complaint alleges that the defendant, Roy Y. Gagaza, one of 1 Global’s top sales agents, unlawfully sold more than $10.8 million of 1 Global’s unregistered securities to numerous investors. According to the complaint, Gagaza marketed 1 Global securities to investors as providing “peace of mind for some money in a volatile market” and claimed that the investments would achieve high single-digit or low double-digit annual returns. Gagaza earned approximately $403,000 in commissions on his sales, even though he was not registered as broker-dealer or associated with a registered broker-dealer.

The SEC charged Gagaza with violations of the securities registration provisions of Sections 5(a) and 5(c) of the Securities Act of 1933 and the broker-dealer registration provisions of Section 15(a)(1) of the Securities Exchange Act of 1934. Gagaza consented, without admitting or denying the allegations, to an injunction, disgorgement of $157,993 with prejudgment interest of $16,640, and a $30,000 civil penalty.