Did 1st Global Capital Defraud Investors?

Investor Alerts Richard Bierig October 9, 2018

The Business Trial Group is investigating claims regarding possible improper investment practices and fraudulent activity on the part of 1st Global Capital, LLC, entities associated with company, and the company’s owner, Carl Ruderman. The Securities and Exchange Commission has alleged that 3,400 investors nationwide may have lost a combined $287 million when the company declared bankruptcy in July 2018.

Entities associated with 1st Global that may have engaged in fraudulent activity include:

1st West Capital, LLC
KNR Consulting Group, Inc
American Alternative Investments, LLC
Carl Ruderman and The Ruderman Family Trust

1st Global and its associated entities allegedly “used a network of barred brokers, registered and unregistered investment advisers, and other sales agents” to raise money for the company through the sale of unregistered and fraudulent promissory notes, according to a recently unsealed complaint filed by the SEC.

The Business Trial Group wants to help investors defrauded by 1st Global Capital or one of its associated entities get their money back. Contact us today for a free case evaluation to learn more.

Investors were told their money would be used exclusively to make short-term cash advances called Merchant Cash Advances (“MCAs”) to small and medium sized businesses that could not obtain financing through a bank loan. The company supposedly promised investors a high-return, low-risk investment, and many of those who invested used their retirement savings, according to the SEC complaint.

The reality was much different.

1st Global allegedly used a significant amount of investor money for purposes other than issuing MCAs, including operating expenses and purchasing long term credit card debt, the SEC complaint says.

Furthermore, Ruderman and his company are said to have misappropriated at least $35 million of investor funds, including $28 million for the Ruderman family trust, other companies not associated with 1st Global owned by Ruderman’s relatives and acquaintances, and Ruderman himself.

Additionally, the company is accused of sending false account statements to investors that misrepresented their portfolio balances, rates of return, and the funds 1st Global had on hand to issue MCAs. The company also claimed that an independent auditor had audited the company’s statements, but that never happened, according to the SEC complaint.

In October 2017, 1st Global experienced a $23 million shortage of funds for MCAs, largely due to the misappropriation of investor funds outlined above. This shortage only increased, and by the end of June 2018, 1st Global was missing nearly $50 million of investor funds.

Just one month later, 1st Global and one of its associated entities, 1st West Capital, LLC, filed for Chapter 11 bankruptcy protection, placing investors at risk of losing significant funds.

Today, Ruderman no longer controls 1st Global, but he was the company’s chairman and CEO the entire time it was in operation. He continues to control or have access to entities that received misappropriated investor funds from 1st Global, according to the SEC.

Don’t Spend More Money Trying To Get Your Investment Back

If you’ve been defrauded by 1st Global or one of its associated entities, the Business Trial Group would like to try and help you get your investment back.

We believe you shouldn’t have to spend money on an attorney with no guarantees they’ll get your investment back. That’s why we work on a contingency fee basis, meaning you pay nothing unless we recover your investment losses.

We have a history of helping victims of securities fraud, and have recovered tens of millions of dollars on behalf of defrauded investors. Contact us today for a free, no-obligation case evaluation to find out more about how we may be able to help.

Charles Oliver Allegedly Advised Clients to Invest in Fraudulent Investment Scheme

Investor Alerts Caroline Cornell May 17, 2018

Clients of TV personality Charles Oliver (of “Hidden Wealth Solutions”) allege that they received unsuitable financial investment advice that resulted in significant financial losses.

Charles Oliver allegedly advised clients to invest their money in pension structured cash flows operated by the company, Future Income Payments (FIP). FIP has been hit with multiple lawsuits and penalties for their predatory lending practices. The company’s instability has ultimately penalized investors, who haven’t received the money they were promised.

What Are Pension Structured Cash Flows?

Pension structured cash flows come with complex risks which are often not disclosed to the investor.

Individuals can sell future rights to the monthly cash flow of their pension plans in exchange for a lump sum. The financial institutions that purchase the rights to the pension plans then sell the monthly cash flow to investors.

These investments are advertised as predictable, monthly income with high yields. However, they come with complex financial risks which are often not disclosed to the investor.

Pension structured cash flows are illiquid, meaning they can be difficult to sell. These products are also usually not registered with the U.S. Securities and Exchange Commission (SEC), so when problems do occur, it can be difficult to resolve them. Further complicating matters is that the investor’s legal rights to the pension cash flow can be challenged since it’s often illegal to purchase pension funds.

Investor Hasn’t Received Payments in Four Months

Unfortunately for some of Charles Oliver’s clients, they were advised to invest in pension structured cash flows—with a disreputable company nonetheless—despite their inherent risks.

Mr. Oliver allegedly went so far as to claim it would be like “auto-pilot.”

For example, one of Mr. Oliver’s clients wanted to pull millions of dollars out of his 401k of balanced mutual funds to purchase a federal pension structured cash flow with Future Income Payments. The client was assured that it was a safe investment, and Mr. Oliver even allegedly went so far as to claim it would be like “auto-pilot.”

The client entered a four-year structured cash flow investment with FIP in January 2017 and received regular monthly payments for a year. Four months ago though, the payments abruptly stopped without any warning or explanation. FIP has since claimed that they are “restructuring,” and it’s unclear if they will resume payments to any investors.

Future Income Payment’s History of Fraud

This isn’t the first time Future Income Payments has engaged in questionable business practices. FIP is banned from operating in multiple states for being an unlicensed lender, including California, Illinois, Iowa, New York, Virginia, and Washington.

In 2016, the Consumer Financial Protection Bureau launched an investigation into the company’s predatory lending practices, which were primarily targeted at the elderly, military veterans, and disabled. Borrowers are often slapped with interest rates as high as 200%—terms that aren’t clearly communicated to them upfront.

Were You Advised to Invest in FIP?

If Charles Oliver or another financial adviser recommended that you invest in Future Income Payments causing you to ultimately suffer a financial loss, you may be able to fight back.

Financial advisers are expected to recommend investments suitable to their client’s needs, financial state, and investment goals. If they recommend unsuitable investments, they may be liable for broker misconduct.

Backed by the largest plaintiff’s law firm in the country, our clients pay no upfront fees or retainers, and we only receive a fee if we successfully recover compensation on your behalf.

For a free, no-obligation review of your securities or investment lawsuit, call us at (877) 599 3102 or fill out our case review form.

MA Investment Adviser Accused of $1M Real Estate Scheme

Investor Alerts Aiman Farooq February 22, 2018

The Massachusetts Securities Division has accused a Massachusetts investment adviser of defrauding his mostly elderly clients out of more than $1 million over a 26 year period.

Thomas T. Riquier and United Planners’ Financial Services of America are charged with misconduct related to the scheme.

According to the Complaint, Thomas T. Riquier, an investment adviser with United Planners’ Financial Services of America, began his scheme in the 1990s by coercing his mostly elderly clients into investing into a private investment fund purportedly created to purchase property that would eventually be sold for a profit. Investor money, however, was actually used to purchase property Riquier already owned and never sold. In fact, investors never received any returns on their investments.

The Massachusetts Securities Division also alleged that United Planners’ Financial Services of America failed to adequately supervise Riquier, allowing him to continue to take advantage of his clients for more than two decades.

If you have suffered significant financial losses from investing in the scheme operated by Thomas Riquier—or one like it—the lawyers of the Business Trial Group may be able to help. With the support of the largest Plaintiff’s law firm in the country, our clients pay no upfront fees or retainers, and we only receive a fee if we successfully recover compensation on your behalf.

For a no cost and no obligation review of your investment losses, please call us at (877) 599 3102 or fill out our case review form.

CFTC Files Third Cryptocurrency Fraud Suit in Just One Week

Investor Alerts Aiman Farooq January 30, 2018

Amidst the astronomic rise in cryptocurrency’s popularity, the Commodity Futures Trading Commission (CFTC) has uncovered numerous cryptocurrency scams that have fleeced unsuspecting investors of millions of dollars. Just yesterday, the CFTC filed its third cryptocurrency fraud suit in one-week against a company named My Big Coin Pay Inc. and its founder Randall Crater.

My Big Coin Pay allegedly defrauded 28 investors out of $6 million over three years.

The CFTC alleges that My Big Coin Pay, Inc. bilked 28 investors out of $6 million from 2014 through 2017. The company marketed its cryptocurrency – My Big Coin – all over social media and YouTube as being as widely accepted as MasterCard, that it was backed by gold, and that there was a market for it. Unfortunately for investors, none of that was true.

In fact, the CFTC alleges that My Big Coin was never traded on any major exchange and that its prices were made up. Instead of using the money for its stated purpose, Randall Crater sent investors’ funds to family members who used the money to buy jewelry, a house, fine art, and other personal items. Moreover, investors who actually received any returns on their investments were allegedly paid with monies obtained from other investors in a Ponzi like manner.

If you have suffered significant financial losses from investing in a cryptocurrency scheme, the lawyers of the Business Trial Group may be able to help. With the resources of the largest contingency-fee law firm in the country, our clients pay no upfront fees or retainers, and we only receive a fee if we successfully recover compensation on your behalf.

For a no cost and no obligation review of your investment losses, please call us at (877) 599 3102 or fill out our case review form.