1st Global Capital LLC – Under SEC Investigation for Possible Securities Law Violations – Files Chapter 11 Bankruptcy

Lost Money with 1st Global Capital LLC? Speak with an Attorney Immediately

The Sonn Law Group – a nationwide securities fraud law firm representing investors who suffer losses because of fraud – is investigating 1st Global Capital LLC, a financial services company in Hallandale Beach, Florida. Contact us online or call us at 305.912.3000 to speak with an attorney about your case, free of charge.

1st Global Capital LLC and 1 West Capital LLC are currently under investigation by the Securities and Exchange Commission (SEC) for alleged securities law violation which include the alleged offer and sale of unregistered securities, the alleged sale of securities by unregistered brokers, and the alleged commission of fraud in connection with the offer, purchase, and sale of securities.

On July 28th, 1st Global Capital LLC and 1 West Capital LLC filed for Chapter 11 bankruptcy. A joint motion filed in the case explained that the companies were forced to file bankruptcy…

“in order to address a sudden and acute liquidity crisis and to preserve their assets and business operations for the benefit of the individual lenders and all other constituencies. As a result of the investigations commenced by the US Attorney’s Office and Securities and Exchange Commission, with which the Debtors have been and will continue cooperating, the Debtors have ceased their pre-petition effort to raise capital.”

We have already heard from investors who have suffered significant investment losses and are seeking representation. If you have invested with 1st Global Capital LLC please contact our firm right away.

More information about 1st Global Capital’s Bankruptcy and SEC Investigation

On July 30th, 2018, 1st Global Capital filed for bankruptcy. Within the filing, the Hallandale Beach, Florida-based loan agency admitted to the fact that it is facing an investment fraud investigation from state and federal regulators.

More specifically, 1st Global Capital, and a related company called 1 West Capital LLC, state that they are filing for bankruptcy protection to “address a sudden and acute liquidity crisis” and that they have stopped raised additional capital because of “investigations commenced by the US Attorney’s Office and Securities and Exchange Commission”.

According to reporting from InvestmentNews, 1st Global Capital is currently being investigated by the SEC, the United States Attorney’s office, and securities watch dogs in several individual states.

The company has been accused of possible securities law violations. There are serious concerns that 1st Global Capital is nothing more than a $283 million loan fraud. Investigators believe that the possible fraud was largely carried out by unregistered financial advisors offering unregistered securities to retail investors.

While the investigation is still underway, one of the most notable findings in the reporting from InvestmentNews is that there appear to be parallels between 1st Global Capital/1 West Capital LLC and the Woodbridge Wealth Ponzi scheme. Similar to Woodbridge Wealth, the purported business model of these companies was based on the sale of short-term, high yielding loans to ordinary investors. Investors were promised above-market returns on seemingly risky promissory notes.

Further, a 1st Global Capital investor cited in the reporting was a client of Barry Kornfeld (CRD#: 1490377). Mr. Kornfeld has previously been barred by FINRA and he sold millions of Woodbridge Wealth promissory notes to investors.

Disclaimer: This article contains opinions and NOT statements of fact in any way whatsoever. The information here is general information that should not be taken as legal advice. NO attorney-client relationship is established between you and our attorneys by reading this article. This article is attorney advertising and should not be used as a substitute for legal advice from a qualified securities lawyer.