The Securities and Exchange Commission today announced charges against an additional four individuals for unlawfully selling securities of 1 Global Capital, LLC, a South Florida merchant cash advance company, to retail investors. The SEC previously charged 1 Global, its owner, and others with operating a fraudulent scheme to misappropriate millions of dollars from at least 3,600 investors. The SEC also previously charged 1 Global’s largest sales agent and three other top revenue-producing sales agents for various registration violations.
The SEC’s complaints allege that the four individual defendants were among 1 Global’s top revenue producers, cumulatively selling more than $24 million of 1 Global’s unregistered securities to numerous retail investors. According to the complaints, the defendants marketed 1 Global securities to investors as a safe and secure alternative to the stock market, baselessly claimed that the investments would achieve high single-digit or low double-digit annual returns, and earned hundreds of thousands of dollars in commissions on their sales, even though they were not registered as broker-dealers or associated with registered broker-dealers.
The SEC charged Chris A. Dantin, Christopher D. Dantin, David P. Ortiz, and Andrew L. White with violations of the securities registration provisions of Sections 5(a) and 5(c) of the Securities Act of 1933 and the broker-dealer registration provisions of Section 15(a)(1) of the Securities Exchange Act of 1934. Chris A. Dantin consented, without admitting or denying the allegations, to an injunction, disgorgement of $22,818.27 with prejudgment interest of $2,403.29, and a $30,000 civil penalty. Christopher D. Dantin consented, without admitting or denying the allegations, to an injunction, disgorgement of $1,279,886.84 with prejudgment interest of $123,157.47, and a $100,000 civil penalty. White also consented, without admitting or denying the allegations, to an injunction, disgorgement of $129,672 with prejudgment interest of $7,279, and a $30,000 civil penalty. In its litigated complaint against Ortiz, the SEC is seeking an injunction, disgorgement of allegedly ill-gotten gains with interest, and a civil penalty.
The SEC’s continuing investigation is being conducted by Gary Miller and Mark Dee, and supervised by Elisha L. Frank, Fernando Torres, and Glenn Gordon. The litigation is being led by Robert K. Levenson and supervised by Andrew Schiff.