Wolper Law Firm, P.A. Investigates 1st Global Capital And 1st West Capital For Securities Laws Violations
Aug 13, 2018
Wolper Law Firm P.A.
Fort Lauderdale, FL (Law Firm Newswire) August 13, 2018 – Wolper Law Firm, P.A. announces that it is investigating Florida based companies, 1st Global Capital, LLC and 1st West Capital, LLC, for potential securities laws violations. If you were sold promissory notes issued by 1st Global Capital, LLC or 1st West Capital, LLC, you should be aware that both companies filed for bankruptcy protection and are currently being investigated for securities fraud by the Securities and Exchange Commission (SEC) and the United States Attorney. As an investor/creditor, it is important that you speak with a qualified securities lawyer to discuss your legal options.
On July 27, 2018, 1st Global Capital, LLC and 1st West Capital, LLC filed for bankruptcy in the District Court in and for the Southern District of Florida. The companies disclosed liabilities of between $100-$500 million and between 1,000-5,000 creditors.
It was further revealed in bankruptcy court filings that the “Securities and Exchange Commission (SEC) opened an investigation into the companies’ activities related to alleged possible securities law violations, including the alleged offer and sale of unregistered securities, the alleged sale of securities by unregistered brokers, and the alleged commission of fraud in connection with the offer, purchase and sale of securities.”
The United States Attorney has since opened a parallel investigation into the business practices of the companies.
1st Global Capital, LLC and 1st West Capital, LLC are based in Hallandale, Florida. The companies operate in the financial services industry, offering direct merchant cash advances to small businesses across the United States. Through independent sales organizations, underwriters and other funding agents, the companies offer a variety of short-term cash advances.
The companies raise capital to finance their business operations through private loans typically repayable in nine months. The loans are memorialized by promissory notes. Investing in private funding enterprises, like 1st Global Capital, LLC and 1st West Capital, LLC, is speculative. Promissory notes are generally illiquid and do not provide investors with rights to inspect the books and records of the company in which they are investing. Under certain circumstances, promissory notes can be classified as a “security” and become subject to the securities laws. If deemed securities, it is unlawful for a company or the agents of the company, to offer promissory notes to investors without first being properly licensed.
It is alleged that unregistered brokers sold promissory notes issued by 1st Global Capital, LLC and 1st West Capital, LLC to retail investors. The promissory notes were marketed as safe, short term, fixed income instruments that could generate above-average rates of return for investors. Investors were neither aware that 1st Global Capital, LLC and 1st West Capital, LLC were in a precarious financial condition nor that the companies were being investigated by the SEC and US Attorneys’ office for securities fraud.
What Should I Do If I Invested In Promissory Notes Issued By 1st Global Capital Or 1st West Capital?
If you were sold promissory notes issued by 1st Global Capital, LLC or 1st West Capital, LLC, you should immediately contact an attorney at the Wolper Law Firm, P.A., for a free consultation. It is critically important for investors impacted by this alleged fraud to speak with an attorney, who can help you identify your recovery options. Contact the Wolper Law Firm at 800.931.8452, or mwolper@wolperlawfirm.com.
About the Wolper Law Firm
Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters.
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Matt Wolper
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