SEC: Unregistered brokers sold $ 24 million in 1 Global Securities


A father and son were among the four people charged by the Securities and Exchange Commission this week with acting as unregistered brokers and illegally distributing at least $ 24 million in securities from 1 Global Capital, a prepayment company, to investors to sell.

The fees are the latest in the perennial saga with 1 Global, a South Florida based company. In August 2018 The company and its former CEO were charged Reportedly, at least 3,600 retail investors, many of whom were retirees, defrauded and raised more than $ 320 million in illegal, unregistered securities between 2014 and July 2018.

1 Global announced to investors that it is providing short-term loans to small and medium-sized businesses as an alternative to traditional bank loans and that it is primarily funding their business with investor funds. 1 Global was looking for unregistered commercial agents to attract investors. The first was Chris D. Dantin, who then won 15 other representatives for the company, including Chris A. Dantin, his father. The two are named along with in the SEC’s most recent indictment David P. Ortiz and Andrew L. White, even unregistered brokers.

The Dantins co-signed a sales agreement in 2015 in which the younger Dantin received a 4% commission for direct sales as well as additional percentages on renewals and sales of agents he added to the group. 1 Global provided him with marketing materials, and during his tenure with the company, Chris D. Dantin sold more than $ 8 million in 1 Global stocks representing a transaction-based sales commission of more than $ 2 million. Neither he nor his father was ever registered as a broker.

1 Global sent out bank statements from investors every month showing that their accounts were borne by interest payments. Investors did not receive these payments immediately, however, and 1 Global only paid interest when investors received a payout. According to the SEC, this created a situation where investors never received interest payments and lost their primary investment, which gave company and CEO Carl Ruderman an opportunity to misuse funds. Ruderman and the company spent investor funds on operations and other business transactions, and used at least $ 32 million for his own use or for businesses in which he or his family were involved.

“This included money to fund a family vacation in Greece, monthly payments for a Mercedes Benz, monthly credit card payments from American Express, payments for Ruderman’s housekeeping staff, $ 4 million for his family business, and $ 1 million for one of his sons to help invest in cryptocurrency “that Complaint against the Dantins read.

1 Global reportedly advised investors that it would use its funds on its short-term corporate loans, that monthly statements accurately reflected the value of an investment, and that an independent accounting firm agreed to 1 Global’s calculation of returns. However, according to the complaint, the monthly bank statements incorrectly displayed the value of the investor portfolios. Since Ruderman had used funds for his own use, the bank statements overestimated the availability of cash in the accounts of 1 Global by $ 23 million to $ 50 million.

When 1 Global went bankrupt in July 2018, many customers had lost all of their hundreds of millions of dollars in investments. In addition to the charges against 1 Global and Ruderman for fraud against investors, the Commission he later charged a Tennessee-based unregistered broker and his firm, which has taken home commissions of more than $ 3.5 million on sales of allegedly illegal Woodbridge Group and 1 Global securities to more than 630 investors over a two-year period.

Both the Dantins and White reached settlement settlements with the SEC, including injunctions; Christopher D. Dantin agreed to a disgorgement of nearly $ 1.3 million, a prejudice interest of $ 123,157, and a civil penalty of $ 100,000, while his father agreed to a disgorgement of $ 22,818, a prejudice interest of $ 2,403 Dollars and a fine of $ 30,000. White agreed to a disgorgement of $ 129,672, prejudice interest of $ 7,279, and a fine of $ 30,000. The Commission is bringing Ortiz to court to obtain an injunction, disgorgement with interest and a civil penalty.


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