2 experienced lawyers in South Florida convicted of financial fraud
What you need to know
- The fraud affected more than 3,600 investors in 42 states, according to prosecutors.
- The company at the center of the scam, 1 Global, was a commercial lending company that offered payday loans.
- According to court records, Ledbetter is said to have fraudulently raised more than $ 100 million from investors since 2015.
Two South Florida securities attorneys and the former chief operating officer of 1 Global Capital LLC were convicted of their roles in a widespread fraud that prosecuted more than 3,600 investors in 42 states.
One of the convicted attorneys is Andrew Dale Ledbetter, 79, of Fort Lauderdale, who also served as an advisor to 1 Global. He pleaded guilty to single count information and accused him of conspiracy to commit wire fraud and securities fraud. US District Judge Roy K. Altman sentenced him to 60 months in prison on Friday.
The second lawyer Jan Douglas Atlas, 76, from Fort Lauderdale, was a partner at 1 Global and acted as an external consultant.
Atlas pleaded guilty to single-count information and charged him with conspiracy to commit wire fraud and securities fraud. He was also sentenced to eight months in prison. The judge also ordered him to pay more than $ 29 million in compensation to the victims of the plan.
Former 1 Global Chief Financial Officer, Alan G. HeathHe was previously indicted and sentenced to 60 months in prison.
The announcement came from Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern Florida District, George L. Piro, Special Envoy, Miami Federal Bureau of Investigation Branch, Matthew D. Line, Special Envoy, Internal Revenue Service, Criminal Investigation, Matthew D. Line, Assistant Special Representative; and Kyle A. Myles, Special Representative, Federal Deposit Insurance Corp. Office of Inspector General.
Atlas defenders were Margot Moss and David Oscar Markus from Markus / Moss in Miami.
Markus said, “Both the judge and the prosecutor in this case were wise in balancing all the good Jan did in his life with what he did in this case, along with numerous others Factors including his remorse and cooperation. ”
The company at the center of the scam, 1 Global, was a commercial lending business based in Hallandale Beach. It offered “payday” loans to small businesses at high interest rates through instruments known as merchant cash advances.
In order to attract investment, the owner of 1 Global, Atlas, Ledbetter and others made false and misleading statements about the profitability of 1 Global’s business through marketing materials and regular bank statements to investors and potential investors.