Florida Cash Advance Company and Former CEO Charged by SEC


Defrauding Retail Investors

1 Global Capital LLC and its former CEO were charged by the Securities and Exchange Commission for allegedly defrauding at least 3,400 retail investors.

Of these retail investors, greater than one-third of them invested a substantial portion of their retirement funds. The Florida-based cash advance company and former CEO Carl Ruderman allegedly raised more than $287 million fraudulently since 2014. For the capital fund raise, the company sold unregistered securities through a shady network that included barred securities brokers.

Amid the SEC charges, the U.S. District Court for the Southern District of Florida, in a parallel action, has granted the SEC’s request for a temporary asset freeze against Ruderman and his other companies. Further, the court also granted the SEC’s request to appoint a receiver over a number of the relief defendants. The corporate entities include Digi South LLC, Media Pay LLC, Bright Smile Financing LLC, BRR Block Inc., Ganador Enterprises LLC and Pay Now Direct LLC.

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SEC Complaint

According to the SEC complaint, 1 Global promised investors profits from its loans to small and mid-sized companies. However, instead of giving remuneration, 1 Global directed a substantial portion of investor proceeds to Ruderman’s lavish personal lifestyle and his consumer loan companies, Bright Smile Financing and Ganador Enterprises. The consumer loan companies had nothing to do with 1 Global’s cash advance business.