Andrew Dale Ledbetter, Wire Fraud, Florida 2021

Florida securities lawyer Andrew Dale Ledbetter, 79, of Fort Lauderdale, Florida, has been sentenced for his role in a massive investment scheme that affected over 3,600 investors in 42 states. Ledbetter was found guilty of conspiracy to commit wire fraud and securities fraud, in violation of Title 18, United States Code, Section 371 (Case No. 20-CR-60103).

According to court documents, 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, termed merchant cash advance loans (“MCAs”). Ledbetter was an attorney licensed in the State of Florida who had an of counsel position at Law Firm #1 and acted in a fundraising capacity at 1 Global beginning in or around 2015.

Substantial questions arose during the operation of the business as to whether 1 Global was offering or selling a security and whether the investment offering was required to be registered with the U.S. Securities and Exchange Commission. These questions were raised by investors, investment advisors, and regulators. Ledbetter and Atlas knew that if 1 Global’s investment offering were determined to be a security, it would undermine the ability of 1 Global to raise funds from retail investors and to continue to operate without substantial additional expenses and reporting requirements.

At the request of 1 Global’s principals, Atlas authored two opinion letters in 2016 containing false information that Atlas allegedly knew would be used by 1 Global to operate the business unlawfully. The opinion letters falsely described the duration of the investment, among other things, omitting the automatic renewal aspect and that the investment was being targeted toward retail, non-sophisticated investors (such as IRA account holders). Ledbetter used and relied on Atlas’s opinion letters to continue to raise money illegally, in numerous pitches and communications to investment advisors and investors.

According to court documents, Ledbetter was personally involved in raising more than $100 million in investor funds that went to 1 Global, through his own pitches as well as through investment advisors he attracted to 1 Global. Over the years, Ledbetter received approximately $3 million from 1 Global, the majority of which was not repaid to investors.

On [no date given], U.S. District Judge Roy K. Altman sentenced Ledbetter to 60 months in prison. Ledbetter was also ordered to pay over $148,976,248 million in restitution to the victims of the scheme.

This case highlights the dangers of investment schemes and the importance of due diligence when investing in securities. It also underscores the need for regulators to closely monitor the activities of businesses that engage in high-risk lending practices.

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