Since 1989, David J. Neal’s scope at the Miami Herald has expanded to include writing on the Panthers (NHL and CRF), Dolphins, old-school animation, food safety, fraud, lawyers rogues, bad doctors and all kinds of news. He drinks whole coladas. He doesn’t work on Indianapolis 500 race day.
SEC Charges 2 More in Miami FL Zone 1 Global Capital Fraud
The 1 global financial fraud
What was sold as a boost for small businesses and an opportunity for family investors turned out to be a massive scam involving financial thugs throughout the Miami-Fort Lauderdale metro area.
The gang of former 1 Global Capital executives or employees charged criminally or civilly in the $322 million fraud increased by two on Monday when the Securities and Exchange Commission filed in Miami federal court against the former executive financier Eric Alexander and director of business development Scott Merkelson.
Each is charged in civil court with six counts of securities fraud.
“Without admitting or denying the SEC’s allegations, Alexander and Merkelson each consented to a permanent injunction, a civil penalty of $100,000, and an officer and director ban,” the SEC said. “Settlements are subject to Court approval.”
The SEC and the US Department of Justice have been dragging parties to this fraud to court since 2019, trying to argue the consequences of money and/or jail time after 3,600 investors in 42 states were sued. scam.
What they thought they were putting their money into: A company giving short-term cash advances — merchant cash advances, or MCAs — to businesses that couldn’t get bank loans, a kind of Amscot for small businesses .
What their money actually funded, according to the SEC complaint (and previous guilty pleas): “In reality, the company used substantial investor funds for purposes other than MCAs, including paying operating expenses and financing the luxurious lifestyle of its founder, president and CEO. CEO Carl Ruderman.
The SEC said Alexander, a 42-year-old Miami Beach resident and Wisconsin CPA, “helped the company raise funds from investors by manipulate 1 Global’s management fees to artificially increase or decrease the investors’ rate of return shown on the investors’ monthly account statements…”
Alexander is also accused of lying by saying Daszkal Bolton acted as an independent auditor of how 1 Global calculates investor returns, while Daszkal Bolton did no such thing.
Then, Merkelson, a 44-year-old Plantation stockbroker, “helped perpetuate the fraud by signing monthly account statements that misrepresented investors’ rates of return,” the SEC complaint said. “Merkelson knew [1 Global] and sales agents used sample statements to solicit new investors.