SEC Charges CFO of Cash Advance Company With Helping Defraud Hundreds of Investors

By:
Chris Gaetano
Published Date:
Aug 16, 2019
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The Securities and Exchange Commission (SEC) has announced charges against the CFO of a Florida-based cash advance company for signing statements he knew were false in order to give investors a false sense of security that their money was safe.

Alan G. Heide was the CFO of 1 Global Capital LLC, which told investors it would generate profits through short-term cash advances to business, but in truth this money was being put toward operational expenses and the CEO's "lavish lifestyle." Heide, a CPA, signed investor statements that he knew were overstated in value, and further lied to backers, saying that the calculations were backed by an independent auditor.

“Heide’s misrepresentations gave false comfort to investors, allowing them to be duped to invest in 1 Global’s securities,” said Eric I. Bustillo, director of the SEC’s Miami regional office. “We allege that as 1 Global’s CFO, Heide played a significant role in 1 Global’s fraud by overstating the value of investors’ accounts and their rates of return and falsely representing the role of an auditor.”

‚ÄčThe SEC’s complaint charges Heide with violations of the anti-fraud provisions of the federal securities laws. The SEC seeks a court-ordered injunction and a financial penalty. Heide agreed to settle the SEC’s charges as to liability, without admitting or denying the allegations, and agreed to be subject to an injunction, with the court to determine the penalty amount at a later date. Separately, the U.S. Attorney's Office for the Southern District of Florida announced criminal charges against Heide.

The company's CEO and its sales agent have already been charged in separate actions.

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