Fort Lauderdale-based attorney Andrew Dale Ledbetter has been charged with fraud in an investment scheme that raised $322 million from more than 3,600 investors across the country.
Charges against Ledbetter by the Securities and Exchange Commission and the U.S. Attorney’s Office are the latest developments in a yearslong investigation into a Hallandale Beach company, 1 Global Capital LLC, that prosecutors say targeted elderly investors while enriching its CEO.
According to an SEC complaint filed in U.S. District Court in Miami, Ledbetter sold securities for 1 Global while the law firm he worked for represented the company. He also recruited a nationwide network of sales agents and earned more than $2.9 million in commissions, the SEC complaint states.
According to the criminal charging affidavit, Ledbetter agreed in 2016 not to disclose legal advice that investments sold by 1 Global were required to be registered with the SEC, and continued to assure investors that they did not require registration, the criminal charging affidavit stated.
Ledbetter faces eight civil charges of violating federal securities laws, including engaging in interstate commerce to obtain money through untrue statements or omissions. Additionally, he is criminally charged with wire fraud and securities fraud.
Erica Perdomo, a Miami-based attorney who represents Ledbetter, said by email that her client had no comment on the charges.
The operation, which authorities have compared to Ponzi schemes, raised money for what investors were told would be high-interest cash advance loans to small businesses that had no other access to capital.
Sales agents targeted elderly investors, some of whom turned over as much as $100,000, authorities said.
Instead of using the money as promised, the companies’ CEO, Carl Ruderman, funneled it to several other companies he controlled and spent $35 million to finance a vacation in Greece, buy a Mercedes-Benz and hire a personal chef.
Charged by the SEC in civil court in August 2018, Ruderman was ordered a year later to pay more than $32 million obtained through the fraud, plus a $15 million civil penalty.
Three other former officials who were charged with crimes in the case are:
Steven Schwartz of Delray Beach, former chief operating officer of 1 Global, was charged in January with conspiracy to commit wire fraud and securities fraud. Schwartz is awaiting sentencing.
Alan Heide, former chief financial officer, pleaded guilty in August 2019 to a charge of conspiracy to commit securities fraud and was sentenced to 60 months in prison.
Jan Atlas, a Fort Lauderdale attorney, pleaded guilty to securities fraud in October 2019 for writing legal documents with the intent to legitimize continued sale of unregistered securities. Atlas was disbarred in February for his role in the scheme and is also awaiting sentencing.
