Former CEO of investment firm indicted in $250 million securities scheme
FORT LAUDERDALE, Fla. — The former chairman of 1 Global Capital in Hallandale Beach was indicted in orchestrating a scheme that defrauded more than 3,400 investors in 42 states of $250 million. Four others, including two men from Palm Beach County have already pleaded guilty to securities fraud.
Carl R. Ruderman, 81, of Miami-Dade County, was indicted Tuesday in the South District of Florida in Fort Lauderdale.
Alan G. Heide, 65, of Lake Worth Beach, the former 1 Global chief financial officer, was sentenced to 60 months in prison by U.S. District Judge Roy K. Altman on Jan. 23, 2020, and also ordered to pay over $57 million in restitution to the victims of the scheme.
Steven Allen Schwart, 78, of Delray Beach, was sentenced to 24 months in prison on July 9, 2021, and ordered to pay over $36 million in restitution.
Andrew Dale Ledbetter, 81, of Fort Lauderdale, was sentenced to 60 months in prison on Aug. 27, 2021, and ordered to pay over $148 million in restitution.
Jan Douglas Atlas, 78, of Fort Lauderdale, was sentenced to eight months in prison on Aug. 19, 2021, and ordered to pay over $29 million in restitution.
1 Global was a commercial lending business that made the equivalent of “pay day” loans to small businesses at high interest rates, termed merchant cash advance loans (“MCAs”).
The company filed for bankruptcy on July 27, 2018.
Ruderman was the chairman of 1 Global and Heide was the chief financial officer. Schwartz was a director and consultant at 1 Global. Ledbetter was an attorney licensed in the State of Florida. Atlas acted as outside counsel for 1 Global.
Ruderman allegedly spent 1 Global’s investor’s money on credit card payments, vacation travel, insurance payments for his art collection and valuable jewelry, drivers, nannies, housekeepers, mortgage payments for his house, tuition and payments for a luxury car driven by his wife, according to prosecutors. Ruderman also diverted investor money to businesses benefiting him and his family, without the investors’ knowledge.
Ruderman and others made false and misleading representations to investors and potential investors as to the profitability of 1 Global’s business in marketing materials and periodic account statements, according to the indictment. Investors were falsely told that 1 Global had audited financials by a public accounting firm, that the investor’s money would be spent on the MCAs, and that they could expect double-digit returns on their investments, among other things, according to the indictment.
Investors, investment advisers and regulators rose substantial questions arose during the operation of the business as to whether 1 Global was offering or selling a security and whether the investment offering was required to be registered with the U.S. Securities and Exchange Commission.