1st Global Capital, LLC and 1st West Capital, LLC, two merchant lenders that recently filed for bankruptcy and have been charged with fraud, are now being investigated by the Goldman Scarlato & Penny PC investor rights lawyers on behalf of victimized investors.

Florida-based 1st Global Capital and 1st West Capital raised over $287 million from investors across the country, through the sale of unregistered and fraudulent promissory notes, according to fraud charges filed on August 29, 2018 by the Securities and Exchange Commission. The two companies disclosed that the Justice Department prosecutors have also launched an investigation.

Prior to the SEC’s fraud charges, 1st Global and 1st West filed for bankruptcy on July 27, 2018, and disclosed between $100-500 million in liabilities and between 1,000-5,000 creditors.

The two entities promoted themselves as merchant lenders in the business of making short-term cash loans to small businesses across the country. In reality, a large portion of the investors’ money was improperly diverted to CEO Carl Ruderman’s lavish personal spending and to his consumer-loan companies, Bright Smile Financing and Ganador Enterprises, which had nothing to do with 1 Global’s cash advance business, the SEC charged.

Investors in 1st Global allegedly were given bogus account statements and were falsely told that it had an independent auditor, and that its secured loans, typically for small amounts, had low default rates, according to the SEC. All these representations were false, and the investors stand to suffer losses in the wake of 1st Global’s bankruptcy.


The Goldman Scarlato & Penny investor rights lawyers Alan Rosca & Paul Scarlato are investigating the sales practices of certain investment professionals that helped recruit investors to invest in 1st Global Capital and 1st West Capital, in exchange for substantial sales commission. Investment professionals have a duty to adequately check a new product before recommending it to their customers.

“With every investment recommendation by an investment professional comes an implicit representation that that professional conducted adequate due diligence as to the investment product he or she is selling,” said Alan Rosca, a securities attorney. “We will hold liable those professionals and their brokerage firms, who disregarded their duties to vet new investment products before recommending them to their customers,” said attorney Rosca.

If you invested in promissory notes issued by 1st Global Capital or 1st West Capital at the recommendation of an investment professional, you should contact the securities lawyers at Goldman Scarlato & Penny PC, Alan Rosca or Paul Scarlato for a free, no-obligation evaluation of your legal options.

Claims arising out of securities violations are typically subject to strict statutes of limitations and other deadlines, and claims not timely filed may be forever lost. Investors should contact an experienced attorney to understand their legal options and learn how much time they have left before their claims expire.


The Goldman Scarlato & Penny investor rights attorneys have been investigating 1st Global Capital and 1st West Capital and are preparing to take action on behalf of investors who purchased notes in the two businesses at the recommendation of their investment professionals. They take most cases of this type on a contingency fee basis, advance the case costs, and only get paid for their time and case expenses if and when they recover money for their clients. They have handled securities cases ranging from class actions to arbitrations on behalf of thousands of investors throughout the country and around the world. For more information about the firm visit www.lawgsp.com.

Investors in 1st Global Capital and 1st West Capital are encouraged to contact the Goldman Scarlato & Penny securities lawyers Alan Rosca or Paul Scarlato for a free, no obligation evaluation of their recovery options, at rosca@lawgsp.com, toll free at 888-998-0530, or through the contact form on this page.

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