1st Global Capital and 1st West Capital File For Bankruptcy Amid SEC Fraud Investigation
The Investment Fraud Attorneys at Meyer Wilson Are Representing Individuals Against Brokerage Firm that Recommended the Purchase of 1st Global Capital
Two affiliated small business lenders - 1st Global Capital LLC and 1st West Capital LLC - filed for bankruptcy at the end of July amid a Securities and Exchange Commission (SEC) investigation into an alleged $283 million loan fraud. According to the agency, at least some of those loans were sold through a network of financial advisers and brokers.
The two Florida-based companies, which share ownership, filed for Chapter 11 bankruptcy on July 27 in the Southern District of Florida’s U.S. Bankruptcy Court. Both 1st Global Capital and 1st West Capital provided small businesses with unsecured, short-term commercial financing, also known as direct merchant cash advances. The terms of the loans reportedly averaged about 9 months and had a yield of 10%. 1st Global Capital is also known as 1st Global Capital Financial Services. According to official filings, the SEC,
"opened an investigation into the company's activities related to alleged possible securities laws violations, including the alleged offer and sale of unregistered securities, the alleged sale of securities by unregistered brokers, and by the alleged commission of fraud in connection with the offer, purchase and sale of securities.”
According to those official filings, both the SEC and the Southern District of Florida U.S. Attorney's office opened similar investigations into these allegations prior to the bankruptcy filings.
If your investment advisor or broker recommended that you purchase 1st Global Capital or 1st West Capital and you lost money as a result, Meyer Wilson is interested in speaking with you. We have spent nearly two decades working with victims of fraud across the United States, and through our efforts we have recovered more than $350 million for our clients. Call our offices at (888) 390-6491 to discuss your legal options over the phone with a member of our firm, or set up a free, in-depth consultation by sending us the details of your situation through our online form.