The hammer came down on a South Florida financier as Carl R. Ruderman, the ex-chairman of 1 Global Capital LLC, was sentenced to a five-year stint in prison for his role in a $250 million securities fraud scheme. In a case that shook investors, 82-year-old Ruderman copped to his crimes last October, with U.S. District Judge Cecilia M. Altonaga carrying out the sentencing and slamming him with a forfeiture money judgment of nearly $286 million, as reported by the U.S. Attorney's Office.
Ruderman's wrongdoing at the helm of 1 Global, a commercial lending enterprise that offered "pay day" style loans at steep rates, included deceiving investors with false claims about the financial health and prospects. Promises of audited financials and double-digit returns were part of a ploy to draw money that would be used on everything from credit card bills to luxury car payments. Investors were hoodwinked as their money underwrit extravagance; vacation getaways, Drivers, nannies, and a collection of art and jewelry that most could only dream of financing.
The scandal underscores how even the watchful eye of the law can be tricked by a mirage of legal/t financial razzmatazz. Ruderman got legal cover to dodge federal securities laws courtesy of falsified opinion letters, authored by attorney Jan Atlas in 2016. The truth hid in plain sight until the operation came tumbling down, landing Ruderman and his accomplices squarely in the sights of justice.
Four co-conspirators, all hailing from South Florida, had previously been caught in the prosecutorial net and pleaded guilty for their roles. Among them were two lawyers who bent the rules, providing Ruderman the false credentials to dodge the heavy hand of the law. The cast of culpable characters includes former CFO Alan G. Heide, attorney Andrew Dale Ledbetter, ex-COO Steven Allen Schwartz, and aforementioned attorney Atlas, each handed sentences ranging from eight months to five years, accompanied by orders to pay out millions to victims of their scheme.
The fallout from 1 Global's downfall has been unfolding since its July 2018 bankruptcy filing. Over 3,400 investors were left in the lurch, with more than a quarter-billion dollars raised during the scheme's run, as detailed by related case documents. Meanwhile, the SEC has been waging its own battles, launching civil fraud actions against the fraudulent financiers.
Authorities including the FBI Miami Field Office, IRS-CI, and FDIC-OIG Miami Region worked the case, leading to the unraveling of the sophisticated scam. Assistant U.S. Attorneys Elizabeth Young and Amanda Perwin led the prosecution, while Assistant U.S. Attorney Nicole Grosnoff is tasked with handling asset forfeiture.
