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Florida Cash Advance Firm, CEO Can’t Dodge SEC Fraud Suit

Feb. 11, 2019, 7:05 PM

A Florida cash advance company can’t get rid of an SEC suit accusing it of defrauding 3,400 investors, a federal judge said Feb. 8.

The Securities and Exchange Commission investigated 1 Global Capital LLC and its CEO for allegedly taking over $287 million from investors and spending it on operating expenses and luxuries for the CEO’s family. The notes 1 Global sold are securities, so the company can’t duck the suit, according to the Florida federal judge’s order denying dismissal.

The firm funneled about $28 million to CEO Carl Ruderman to cover monthly payments on his Mercedes-Benz, a Greek vacation, ...

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