GRIMY TIMES EXCLUSIVE: A former top executive at a Florida-based payday lending firm has been charged with conspiracy to commit securities fraud in a $330 million scheme that swindled over 3,600 investors nationwide.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office, announced the charges against Alan G. Heide, 61, of Lake Worth, Florida.
Heide, the former Chief Financial Officer of 1 Global Capital, LLC, was charged with one count of conspiracy to commit securities fraud, in violation of Title 18, United States Code, Section 371, in Case No. 19-60231.
If convicted, Heide faces a maximum statutory sentence of up to five years in prison and a fine up to $250,000 or double the gross proceeds of the offense.
According to the allegations, 1 Global Capital, LLC, a commercial lending business based in Hallandale Beach, Florida, made the equivalent of ‘pay day’ loans to small businesses at high interest rates. To fund these merchant cash advance loans, 1 Global obtained funds from investors nationwide, offering short-term investment contracts.
Heide and his co-conspirators allegedly made false and misleading representations to investors and potential investors as to the profitability of 1 Global’s business in marketing materials and periodic account statements.
The information alleges that 1 Global lost money, and used new investor funds to pay back earlier investors who sought to cash out in a manner consistent with a Ponzi scheme, as well as misappropriating large amounts of cash for their personal benefit.
Heide and others at 1 Global also made false statements to investors that gave the impression that the company had an independent auditor, and paid substantial commissions and other expenses with investor funds without disclosing the extent of these payments.
The scheme ultimately collapsed in July 2018, with 1 Global filing for bankruptcy and leaving behind a $50 million cash deficit.
A parallel civil enforcement action was also filed by the SEC, charging Heide with civil fraud.
The case is assigned to U.S. District Judge Roy Altman in Fort Lauderdale.
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- Bradford L. Huebner, Conspiracy to Commit Currency Fraud, Toledo OH · Florida
Key Facts
- State: Florida
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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