Difference between revisions of "Promissory note fraud"

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=='''Recent SEC Enforcement Actions Against Promissory Note Frauds'''==
=='''Recent SEC Enforcement Actions Against Promissory Note Frauds'''==
SEC v. 1 Global Capital LLC and Carl Ruderman
'''<u>SEC v. 1 Global Capital LLC and Carl Ruderman</u>'''
On August 29, 2018, the SEC filed charges against 1 Global Capital LLC and its former CEO, Carl Ruderman, for allegedly defrauding 3,400 retail investors in a $322 million promissory note fraud. According to the SEC’s complaint, 1 Global promised investors a “high-return, low-risk investment” in which 1 Global would use investor money to make short-term loans to small and medium-sized businesses, known as Merchant Cash Advances. Instead of using investor money as marketed, 1 Global made make Ponzi scheme-like payments to early investors from the sales of the promissory notes and Ruderman misappropriated millions of dollars for his own uses.
On August 29, 2018, the SEC filed charges against 1 Global Capital LLC and its former CEO, Carl Ruderman, for allegedly defrauding 3,400 retail investors in a $322 million promissory note fraud. According to the SEC’s complaint, 1 Global promised investors a “high-return, low-risk investment” in which 1 Global would use investor money to make short-term loans to small and medium-sized businesses, known as Merchant Cash Advances. Instead of using investor money as marketed, 1 Global made make Ponzi scheme-like payments to early investors from the sales of the promissory notes and Ruderman misappropriated millions of dollars for his own uses.