Carl R. Ruderman, Securities Fraud, Florida 2024

MIAMI – A shocking indictment has been unsealed in the case of Carl R. Ruderman, 81, former chairman of 1 Global Capital LLC, a commercial lending business based in Hallandale Beach, Florida. Ruderman, along with four co-conspirators, is accused of orchestrating a sprawling fraud scheme that affected more than 3,400 investors in 42 different states.

The indictment alleges that to attract investments, Ruderman and others 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. Investors were falsely told that 1 Global had audited financials by a public accounting firm, that the investor's money would be spent on the merchant cash advance loans, and that they could expect double-digit returns on their investments, among other things.

The scheme, which spanned several years, saw Ruderman and his co-conspirators siphoning off millions of dollars from investors to fund their own lavish lifestyles. According to the allegations, Ruderman spent investor's money on credit card payments, vacation travel, insurance payments for his art collection and valuable jewelry, drivers, nannies, housekeepers, mortgage payments for his house, tuition, and payments for a luxury car driven by his wife.

Ruderman's co-conspirators, Alan G. Heide, Andrew Dale Ledbetter, Steven Allen Schwartz, and Jan Douglas Atlas, have all pleaded guilty to their roles in the scheme. Heide, the former chief financial officer of 1 Global, was sentenced to 60 months in prison and ordered to pay over $57 million in restitution to the victims. Ledbetter, an attorney who acted in a fundraising capacity at 1 Global, was also sentenced to 60 months in prison and ordered to pay over $148 million in restitution. Schwartz, a director and consultant at 1 Global, was sentenced to 24 months in prison and ordered to pay over $36 million in restitution. Atlas, a partner at Law Firm #1, was sentenced to eight months in prison and ordered to pay over $29 million in restitution.

The indictment charges Ruderman with conspiracy to commit securities fraud, among other crimes. If convicted, he faces a maximum of 20 years in prison and a fine of up to $5 million.

The case is a stark reminder of the dangers of securities fraud and the importance of due diligence when investing in any business or organization. It also highlights the need for strict enforcement of securities laws and regulations to protect vulnerable investors.

Source: https://www.justice.gov/usao-sdfl/pr/former-chairman-1-global-indicted-running-250-million-securities-fraud-scheme