Articles Posted in SEC Complaint

1st Global Capital

News reports and publicly available records provided by the US courts indicate that 1st Global Capital and 1 West Capital filed for bankruptcy in July 2018 amid investigations by the Securities and Exchange Commission and the US Attorneys’ Office into an alleged $283 million loan fraud. Fitapelli Kurta is interested in hearing from investors whose brokers solicited investments in 1 Global Capital or 1 West Capital. Investors may have claims for fraud, unsuitable or negligence and may be able to recover damages.

According to Investment News, “unsecured, short-term commercial financing,” according to a filing in the United States Bankruptcy Court for the Southern District of Florida, Fort Lauderdale Division. The company has served business in industries including “automotive, construction, e-commerce, events, franchise, hospitality, healthcare, manufacturing, retail, restaurant/bar, spa/salon, and transportation.” Its platform can provide up to $500,000 for working capital, which loan recipients can repay through “daily, weekly or other periodic automated clearing house transactions or merchant credit card receivable splits.” It also provides collateral-based funding and accounts-receivable funding services.

The court filing states further that before the bankruptcy filings were made, the SEC launched an investigation into alleged “possible securities law violations” by the company, including allegations that it: offered and sold unregistered securities, sold securities by unregistered brokers, and committed fraud in connection with the offer, purchase and sale of securities. Roughly concurrently, according to that filing, the Office of the United States Attorney for the Southern District of Florida launched an investigation into the same and additional activities the company participated in. The company is reportedly cooperating with both investigations. In response to the investigations, it has reportedly seen the resignation of two of its executives, Carl Ruderman and Steven A. Schwartz.

Christopher McClurePublic records published by the Financial Industry Regulatory Authority (FINRA) and accessed on June 8, 2018 indicate that Connecticut-based Westport Capital Markets broker/adviser Christopher McClure, who has received resolved or pending customer disputes, was recently named in a complaint by the Securities and Exchange Commission (SEC). Fitapelli Kurta is interested in speaking to investors who have complaints regarding Mr. McClure (CRD# 2289844).

Christopher McClure has spent 25 years in the securities industry and has been registered with Westport Capital Markets in Westport, Connecticut since 2001. Previous registrations include Prudential Securities in New York, New York (1997-2001); Merrill Lynch in New York, New York (1995-1997); Smith Barney in New York, New York (1993-1995); and Lehman Brothers in New York, New York (1992-1993). He has passed six securities industry examinations: Series 65 (Uniform Investment Adviser Law Examination), which he obtained on December 22, 1992; Series 63 (Uniform Securities Agent State Law Examination), which he obtained on December 8, 1992; Series 7 (General Securities Representative Examination), which he obtained on December 2, 1992; Series 53 (Municipal Securities Principal Examination), which he obtained on February 12, 2008; Series 27 (Financial and Operations Principal Examination), which he obtained on June 14, 2007; and Series 26 (General Securities Principal Examination), which he obtained on September 26, 2006. He is a registered broker and investment adviser with 29 US states and territories.

According to his BrokerCheck report, he has received one customer complaint, one pending customer complaint, and one civil complaint by the SEC.