(HedgeCo.Net) The Securities and Exchange Commission today charged 1 Global Capital LLC\u2019s former chief financial officer, Alan G. Heide, with defrauding retail investors. The now bankrupt Florida-based cash advance company allegedly fraudulently raised more than $322 million from 3,600 investors between 2014 and last year. The SEC previously charged 1 Global and former CEO Carl Ruderman with fraud and charged Henry J. \u201cTrae\u201d Wieniewitz, III for his allegedly unlawful sales of 1 Global securities. Ruderman and Wieniewitz have consented to final judgments. <\/p>\n
According to the SEC\u2019s complaint, although 1 Global promised investors profits from its short-term cash advances to businesses, the company used substantial investor funds for other purposes, including paying operating expenses and funding Ruderman\u2019s lavish lifestyle. The SEC alleges that Heide, a certified public accountant, for nine months regularly signed investors\u2019 monthly account statements that he knew overstated the value of their accounts and falsely represented that 1 Global had an independent auditor that had endorsed the company\u2019s method of calculating investor returns. <\/p>\n
\u201cHeide\u2019s misrepresentations gave false comfort to investors, allowing them to be duped to invest in 1 Global\u2019s securities,\u201d said Eric I. Bustillo, Director of the SEC\u2019s Miami Regional Office. \u201cWe allege that as 1 Global\u2019s CFO, Heide played a significant role in 1 Global\u2019s fraud by overstating the value of investors\u2019 accounts and their rates of return and falsely representing the role of an auditor.\u201d<\/p>\n
The SEC\u2019s complaint charges Heide with violations of the antifraud provisions of the federal securities laws. The SEC seeks a court-ordered injunction and a financial penalty. Heide agreed to settle the SEC\u2019s charges as to liability, without admitting or denying the allegations, and agreed to be subject to an injunction, with the court to determine the penalty amount at a later date.<\/p>\n
Separately, the U.S. Attorney’s Office for the Southern District of Florida today announced criminal charges against Heide.<\/p>\n
This is the third action the SEC has brought involving the 1 Global fraud. In the first case, Ruderman consented to a final judgment against him in which he was permanently enjoined from violating the antifraud, securities registration, and broker-dealer registration provisions of the federal securities laws, and held liable for disgorgement of approximately $32 million in ill-gotten gains and a civil penalty of $15 million. As part of the judgment, Ruderman agreed to turn over approximately $750,000 in cash, as well as 50 percent of the equity in his multimillion-dollar condominium.<\/p>\n
Additionally, in July, the SEC filed a settled action charging a 1 Global external sales agent, Wieniewitz, with securities and broker-dealer registration violations. Wieniewitz agreed to a final judgment holding him and his former company jointly and severally liable for more than $3.5 million in disgorgement and a $150,000 civil penalty. He was previously enjoined from violating the securities registration and broker-dealer registration provisions of the federal securities laws.<\/p>\n","protected":false},"excerpt":{"rendered":"
(HedgeCo.Net) The Securities and Exchange Commission today charged 1 Global Capital LLC\u2019s former chief financial officer, Alan G. Heide, with defrauding retail investors. The now bankrupt Florida-based cash advance company allegedly fraudulently raised more than $322 million from 3,600 investors […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048],"tags":[],"class_list":["post-70558","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/70558","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=70558"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/70558\/revisions"}],"predecessor-version":[{"id":70559,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/70558\/revisions\/70559"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=70558"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=70558"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=70558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}