Alan G. Heide, Securities Fraud, Florida 2022

Former Chief Financial Officer Alan G. Heide, 61, of Lake Worth, Florida, has been charged in connection with a $330 million securities fraud scheme, related to a commercial payday loan business that operated from early 2014 through July 2018, impacting more than 3,600 investors in 42 different states.

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 made the announcement.

Heide was charged today by information with one count of conspiracy to commit securities fraud, in violation of Title 18, United States Code, Section 371, in Case No. 19-60231. The case is assigned to U.S. District Judge Roy Altman in Fort Lauderdale. 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 information, 1 Global Capital LLC (1 Global) was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans to small businesses at high interest rates. To fund these merchant cash advance loans (“MCAs”), 1 Global obtained funds from investors nationwide, offering short-term investment contracts. The investors would supposedly receive a proportionate share of the principal and interest payments as the loans were repaid. 1 Global raised money using investment advisors and other intermediaries, with promises of significant commissions. In many cases, the commissions were not fully disclosed to investors.

Heide was the Chief Financial Officer of 1 Global from 2014 through 2016, when he became the Executive Vice President and Director of Syndicate Partner Relations. In order to attract investments, 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 bankruptcy case, In re: 1 Global Capital LLC, et al., No. 18-19121-RBR (S.D. Fla.), remains pending. In connection with a parallel civil enforcement action, the SEC today announced the filing of civil fraud charges against Heide.

Defendant: Alan G. Heide

Crime: Conspiracy to commit securities fraud

City and State: Lake Worth, Florida

Date: 2022

Sentence: Up to five years in prison and a fine up to $250,000 or double the gross proceeds of the offense

Dollar amounts: $330 million

Source: https://www.justice.gov/usao-sdfl/pr/former-chief-financial-officer-1-global-capital-llc-charged-conspiracy-commit