1 Global looks to enter securities law violation consent order

By Caroline Salls

Pittsburgh, Dec. 10 – 1 Global Capital LLC requested court approval to enter into a consent order and judgment with the Securities and Exchange Commission, according to a motion filed Friday with the U.S. Bankruptcy Court for the Southern District of Florida.

1 Global said the SEC filed a proceeding against it on Aug. 23 in the U.S. District Court for the Southern District of Florida, alleging violations of the federal securities laws that occurred before the company filed bankruptcy.

Under the consent order, 1 Global will be “permanently restrained and enjoined from violating Sections 5(a) and 5(c) and 17(a) of the Securities Act and Sections 10(b) and 15(a)(1) and Rule 10b-5 of the Exchange Act.”

“Such prohibition on the activities of the debtors will not have any effect on the current business activities of the debtors because the debtors ceased the solicitation of any and all investments upon the commencement of these Chapter 11 cases,” the motion said.

In addition, the district court will determine whether it is appropriate to order the return “of ill-gotten gains” and prejudgment interest against the company or a civil penalty.

As part of that determination process, 1 Global will not be allowed to argue that it did not violate the securities laws in question.

1 Global is a Hallandale Beach, Fla., business lender. The company filed for bankruptcy on July 27 under Chapter 11 case number 18-19121.

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