MIAMI – A Florida govt whose circle of relatives business as soon as owned Playgirl magazine has pleaded guilty to conspiracy to devote securities fraud for deceptive traders in every other of his firms — one who made high-interest loans to small companies.
Carl R. Ruderman, 82, was once chairman and leader govt officer of one Global Capital LLC, a business lending company that filed for chapter in July 2018. Federal government mentioned he took section in a $250 million scheme that affected greater than 3,400 traders in 42 states.
Ruderman pleaded guilty Thursday in federal court docket in Miami. Court data display sentencing is about for Jan. 3, and he faces up to 5 years in jail and forfeiture of greater than $250 million.
Ruderman admitted spending 1 Global traders’ cash on credit card bills, holiday trip, drivers, nannies, housekeepers, tuition, loan bills, luxurious automotive bills and insurance coverage bills for his artwork assortment and jewellery, the Justice Department mentioned in a news liberate Friday
Ruderman additionally admitted diverting traders’ cash to companies benefitting him and his circle of relatives, with out traders’ wisdom, the dept mentioned.
The company — primarily based in Hallandale Beach, Florida — made loans to small companies, known as service provider money advance loans. Prosecutors in comparison the ones to payday loans.
The Justice Department mentioned Ruderman admitted he and others made false representations to traders and attainable traders in regards to the profitability of one Global. Investors have been falsely informed the company were audited by way of a public accounting company, that traders’ cash could be spent at the service provider money advance loans, and that individuals may be expecting double-digit returns on investments.
The Securities and Exchange Commission mentioned in a 2018 grievance towards Ruderman and 1 Global that the company accrued cash from traders, lots of whom used retirement financial savings, from February 2014 to July 2018.
The SEC mentioned 1 Global was once shaped in 2013 and owned by way of the Ruderman Family Trust. The SEC mentioned the consider additionally owned different companies, together with Digi South, which “used to own Playgirl and other adult magazines.” Digi South used the similar cope with as 1 Global and “received approximately $805,000 in investor funds from 1 Global for no consideration or legitimate services,” the SEC mentioned.
Four of Ruderman’s co-conspirators prior to now pleaded guilty for his or her roles in the 1 Global fraud, the Justice Department mentioned.
Alan G. Heide, 65, of Lake Worth, Florida, the previous 1 Global leader monetary officer, pleaded guilty in 2019 to one depend of conspiracy to devote securities fraud. He was once sentenced to 5 years in jail and ordered to pay greater than $57 million in restitution.
Andrew Dale Ledbetter, 81, a legal professional from Fort Lauderdale, Florida, pleaded guilty in 2021 to conspiracy to devote cord fraud and securities fraud. He was once sentenced to 5 years in jail and ordered to pay greater than $148 million in restitution.
Steven Allen Schwartz, 78, of Delray Beach, Florida, a director and marketing consultant at 1 Global, pleaded guilty in 2020 to conspiracy to devote cord fraud and securities fraud. He was once sentenced to two years in jail and ordered to pay greater than $36 million in restitution.
Jan Douglas Atlas, 78, of Fort Lauderdale, Florida, a legal professional, pleaded guilty in 2019 to conspiracy to devote cord fraud and securities fraud. He was once sentenced to 8 months in jail and ordered to pay greater than $29 million in restitution.