Business Profilefor1 GC Collections

Gov. Action
As of August 12, 2019, SEC Case 0:18-cv-61991-BB

The Securities and Exchange Commission settled a case with former 1st Global Capital CEO, Carl Ruderman. In an action granted by the U.S. District Court for the Southern District of the Florida, the Securities and Exchange Commission (SEC) obtained the following order and judgements:

C. Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934 ("Exchange Act")Ruderman is permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Exchange Act (15 U.S.C. § 78j(b))
and Rule 10b-5 promulgated thereunder (17 C.F.R. § 240.10b-5), by using any means or instrumentality of interstate commerce, or of the mails, or of any facility of any national securities exchange, in connection with the purchase or sale of any security:
(a) to employ any device, scheme, or artifice to defraud;
(b) to make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; or
(c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person,
with respect to:
(A) any investment strategy or investment in securities,
(B) the prospects for success of any product or company,
(C) the use of investor funds,
(D) compensation to any person, or
(E) the misappropriation of investor funds or investment proceeds.

As provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who receive actual notice of this Judgment by personal service or otherwise: (a) Ruderman's officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or participation with Ruderman or with anyone described in (a).

DISGORGEMENT, PREJUDGMENT INTEREST, AND CIVIL PENALTY

Ruderman is liable to the Commission for disgorgement of $32,587,166, representing profits gained as a result of the conduct alleged in the Amended Complaint, together with prejudgment interest on disgorgement of $1,517,273.00, and a civil penalty of $15,000,000.00 pursuant to Section 20(d) of the Securities Act and Section 21(d)(3) of the Exchange Act, for a total of $49,104,439.00.

Ruderman shall partially satisfy the disgorgement and prejudgment interest payments due to the Commission within 30 days of entry of this Final Judgment by disgorging the following assets to the Commission or its designee:
(i) $4,951.63.00, representing the full amount now held in the Bank of America account in Ruderman's name ending in 6994;
(ii) $541,071.00 from the Annuity, Contract Number ending in 9843, held with the Lincoln Financial Group; and
(iii) $67,800.00 each in accounts ending in 0565, 0566, and 0567 held at UBS Group AG (for a total of $203,400.00 from the three accounts).

Upon receipt of this Final Judgment, Bank of America, the Lincoln Financial Group, and UBS Group AG shall each cooperate fully and take all necessary steps to expeditiously turn over the funds in the accounts set forth in (i), (ii), and (iii) above to the Commission or its designee directly, or, where necessary, to Ruderman, whereupon Ruderman shall promptly turn over the funds to the Commission.

Ruderman shall further partially satisfy the Final Judgment by agreeing to disgorge to the Commission or its designee 50 percent of any equity remaining in his condominium located at 20165 Northeast 39th Place, #TS-01, Aventura, Florida, 33180, Miami-Dade Office of the Property Appraiser Folio 28-1235-076-0450 ("Condominium"), upon sale of the Condominium as set forth below (after satisfaction of the mortgage and condominium association and any related fees).


For further assistance please contact
SECURITIES AND EXCHANGE COMMISSION
801 Brickell Avenue, Suite 1800
Miami, Florida 33131
Telephone: (305) 982-6300
Facsimile: (305) 536-4154
https://www.sec.gov/regional-office/miami

Securities and Exchange Commission v. Eric A. Alexander, No. 22-cv-60700 S.D. Fla.,

As of May 4, 2022:

A Consent Final Judgment and Permanent Injunction was issued in regards to Eric A Alexander which states:

IT IS ORDERED AND ADJUDGED that Alexander is permanently restrained and enjoined from violating Section 17(a) of the Securities Act, 15 U.S.C. § 77q(a)

IT IS FURTHER ORDERED AND ADJUDGED that Alexander is permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Exchange Act, 15 U.S.C. § 78j(b), and Rule 10b-5 promulgated thereunder, 17C.F.R. § 240.10b-

IT IS FURTHER ORDERED AND ADJUDGED that Alexander is liable to the Commission for a civil penalty of $100,000 pursuant to Section 20(d) of the Securities Act, 15 U.S.C. § 77t(d), and Section 21(d)(3) of the Exchange Act, 15 U.S.C. § 78u(d)

IT IS FURTHER ORDERED AND ADJUDGED that, pursuant to Section 21(d)(2) of the Exchange Act, 15 U.S.C. § 78u(d)(2), and Section 20(e) of the Securities Act, 15 U.S.C. § 77t(e), Alexander is prohibited, for five years following the date of entry of this Final Judgment, from acting as an officer or director of any issuer that has a class of securities registered pursuant to Section 12 of the Exchange Act, 15 U.S.C. § 78l, or that is required to file reports pursuant to Section 15(d) of the Exchange Act, 15 U.S.C. § 78o(d)

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As of April 11, 2022:

The Securities and Exchange Commission announced charges against an additional two individuals in connection with its investigation related to 1 Global Capital, LLC, a now bankrupt South Florida merchant cash advance company. The SEC previously charged 1 Global, its owner, and others with operating an allegedly fraudulent scheme that raised $322 million from at least 3,600 investors. The SEC also previously charged ten of 1 Global's top sales agents, for various registration violations.

In separate complaints, the SEC alleges that 1 Global's former chief financial officer, Eric A. Alexander, and its former director of business development, Scott A. Merkelson, participated in 1 Global's fraud on retail investors. According to the complaints, Alexander, a certified public accountant, and Merkelson, a former licensed securities professional, manipulated 1 Global's management fee to artificially raise or lower investors' monthly rates of return and signed monthly investor account statements that they knew contained these false rates of return. Additionally, according to the complaints, the monthly account statements Alexander and Merkelson signed falsely represented that an independent auditor had endorsed 1 Global's method of calculating investor returns.

The SEC's complaints, which were filed in federal district court in Miami, charge Alexander and Merkelson with violations of the antifraud provisions of the federal securities laws. Without admitting or denying the SEC's allegations, Alexander and Merkelson each consented to a permanent injunction, a $100,000 civil penalty and an officer and director bar. The settlements are subject to Court approval.

LINK: https://www.sec.gov/litigation/litreleases/2022/lr25357.htm?utm_medium=email&utm_source=govdelivery