[Yuppie]

https://mailchi.mp/alternativelendin...d?e=b9cb4245fa

Does anyone know what's the story with 1st Global?

[mcaguru]

I think its to early to tell it can be just the beginning... No idea once the Gov and Lawyers representing clients and forensic accounting gets involved it can get real interesting. i personally have no interest in following this story and have zero syndicates in our funding companies deals so i'm really on the sidelines of this story.


http://www.investmentnews.com/articl...lorida-lending

[Karen37a]

They used unregistered brokers around the country to sell investments to retail investors

285 Million and they sold or raised capital from Mom and Pop retirees

" The company's activities related to alleged possible securities laws violations, including the alleged offer and sale of unregistered securities, the alleged sale of securities by unregistered brokers, and by the alleged commission of fraud in connection with the offer, purchase and sale of securities,"

__

So in plain English. They are accused of pretending to be stockbrokers and convincing retired people to give them money for investments. They made the commission on the investment, then took the money they raised and then used it to become a Funder and give cash advances or loans to merchants

And its not too early. That's Fraud on so many levels.

[Yuppie]

Wow that's way worse then what I thought.

[mcaguru]

Interesting...There is an entire aspect an ISO who funded lots of deals called me frantic about that no ones discussing but i don't want to bring it up.... either the investigators and lawyers will seek to go down that path that can be a whole story in of itself.

[Nunya]

Interesting...There is an entire aspect an ISO who funded lots of deals called me frantic about that no ones discussing but i don't want to bring it up.... either the investigators and lawyers will seek to go down that path that can be a whole story in of itself.

What?

[Kevin Henry-Seacoast]

Interesting...There is an entire aspect an ISO who funded lots of deals called me frantic about that no ones discussing but i don't want to bring it up.... either the investigators and lawyers will seek to go down that path that can be a whole story in of itself.

Quite possible....This is not some small fraud that occurred. The larger cases will certainly get the attention of several agencies that are already involved and they will likely go down several paths.... Wanna solve a fraud.....follow the money.....

[fundingsmbs]

organized crime essentially has been and is flowing into this business. still think self regulation works?

[mcaguru]

Quite possible....This is not some small fraud that occurred. The larger cases will certainly get the attention of several agencies that are already involved and they will likely go down several paths.... Wanna solve a fraud.....follow the money.....

Kevin my iso's main question of concern was the commissions that was paid out to him (rightfully) will they say later that it was investors funds and will he need to return ? that what he said him and other ISO's were discussing and a little concerned ..i told him i'm no lawyer.

[Kevin Henry-Seacoast]

Kevin my iso's main question of concern was the commissions that was paid out to him (rightfully) will they say later that it was investors funds and will he need to return ? that what he said him and other ISO's were discussing and a little concerned ..i told him i'm no lawyer.

I am not an attorney, but you can bet your lucky stars the agencies involved are going to track every dollar in and out until the investors/creditors are paid and they find out who was involved and on what level. If they were doing a lot of business with them it is likely they are going to get a call from one of the agencies asking who, what, where, why, and when.

[mcaguru]

I am not an attorney, but you can bet your lucky stars the agencies involved are going to track every dollar in and out until the investors/creditors are paid and they find out who was involved and on what level. If they were doing a lot of business with them it is likely they are going to get a call from one of the agencies asking who, what, where, why, and when.

so that was the concern ...so if an ISO funded over a year 500K and commissions was 65K can they one day say it was ill-Gotten/earned ? I don't think ..i told him not to be concerned. you cant live life worrying and certainly they were just funding deals.

[jenk12]

Kevin my iso's main question of concern was the commissions that was paid out to him (rightfully) will they say later that it was investors funds and will he need to return ? that what he said him and other ISO's were discussing and a little concerned ..i told him i'm no lawyer.

Attorney here. If the payments were done in the normal course of business, a regular commission payment would not be clawed back. Also, claw backs would only apply to payments made within 90 days of the bankruptcy. If I were an ISO, I wouldn't worry about it, but keep your invoices just in case to show this was an ordinary, arm's length transaction.

[mcaguru]

Attorney here. If the payments were done in the normal course of business, a regular commission payment would not be clawed back. Also, claw backs would only apply to payments made within 90 days of the bankruptcy. If I were an ISO, I wouldn't worry about it, but keep your invoices just in case to show this was an ordinary, arm's length transaction.

that's what i figured. He was just saying that the actual funds they paid (iso)) was whose funds at time it was paid ?! would that mean if its traced to be investors funds can it have to be retuned... your saying not i guess !! which is good for the ISO's that may not have those funds sitting around.

[Kevin Henry-Seacoast]

so that was the concern ...so if an ISO funded over a year 500K and commissions was 65K can they one day say it was ill-earned ?

Not sure if they are going to be concerned about commissions paid, but they may ask questions about business dealings if they did a lot of business with them.

[mcaguru]

Not sure if they are going to be concerned about commissions paid, but they may ask questions about business dealings if they did a lot of business with them.

What can they ask an iso??...it seems pretty clear that an ISO knows all about the Deal they submitted but what ISO would have or have known any of the inner works ..In that area i dont think any of the ISO's would have much value (if Any) on the inner works of the funder. its the commission question that perhaps (however an attorney already said non issue) that could be an ISO's potential (theoretical) issue.

[TheShitzuofMCA]

I interviewed there a few years ago and got a bad vibe did not take the position. At the time they had hired a new COO and it seemed she was under pressure. I hadnt even taken the job she wanted me on a plane to New York the next day. I figured something was up I saw alot of staff turnover before that, knew of investors that had pulled out.

[Karen37a]

Attorney here. If the payments were done in the normal course of business, a regular commission payment would not be clawed back. Also, claw backs would only apply to payments made within 90 days of the bankruptcy. If I were an ISO, I wouldn't worry about it, but keep your invoices just in case to show this was an ordinary, arm's length transaction.

non Atty here and ex compliance officer ex series 7 /24 ex mortgage broker and insurance national producer

If someone participated in the syndication....they have a bit more to worry about IMO

[Kevin Henry-Seacoast]

What can they ask an iso??...it seems pretty clear that an ISO knows all about the Deal they submitted but what ISO would have or have known any of the inner works ..In that area i dont think any of the ISO's would have much value (if Any) on the inner works of the funder. its the commission question that perhaps (however an attorney already said non issue) that could be an ISO's potential (theoretical) issue.

If anyone did a fair amount of business with a company that is involved in a BK and fraud case, they could very well get a call from a regulator/investigator wanting to know what the payments were for and the nature of the business relationship. Again....if you want to solve a fraud case you have to follow the money. If there are decent amounts of money flowing out on a regular basis to a company that is involved in a fraud....what do you think an investigator or regulator is going to do....follow the money.

[Karen37a]

If anyone did a fair amount of business with a company that is involved in a BK and fraud case, they could very well get a call from a regulator/investigator wanting to know what the payments were for and the nature of the business relationship. Again....if you want to solve a fraud case you have to follow the money. If there are decent amounts of money flowing out on a regular basis to a company that is involved in a fraud....what do you think an investigator or regulator is going to do....follow the money.

I agree

[MidnightAdvance]

https://mailchi.mp/alternativelendin...d?e=b9cb4245fa

Does anyone know what's the story with 1st Global?

How is it possible that the RTR is $238 million and the capital raised is close to $300? Are they excluding bad debt? The RTR should at least be $400 million..

[mcaguru]

If anyone did a fair amount of business with a company that is involved in a BK and fraud case, they could very well get a call from a regulator/investigator wanting to know what the payments were for and the nature of the business relationship. Again....if you want to solve a fraud case you have to follow the money. If there are decent amounts of money flowing out on a regular basis to a company that is involved in a fraud....what do you think an investigator or regulator is going to do....follow the money.

I get that so lets say they follow and see ISO got monthly payments of 10K than what happens ? the question is whose 10K was being used to wire the ISO is what i was being asked ? ! ... If its treated like they paid wal mart for toilet paper then i dont think they make wal mart return funds (walmart just an example) and it seems from lawyer on this thread ISO would be treated like i guess a walmart for toilet paper vendor and it ends there!

[Kevin Henry-Seacoast]

Attorney here. If the payments were done in the normal course of business, a regular commission payment would not be clawed back. Also, claw backs would only apply to payments made within 90 days of the bankruptcy. If I were an ISO, I wouldn't worry about it, but keep your invoices just in case to show this was an ordinary, arm's length transaction.

Regardless of a commission claw back or not.... If any large sums of money passed through your firm on a regular basis from them, you are likely gonna get a phone call.

[Kevin Henry-Seacoast]

I get that so lets say they follow and see ISO got monthly payments of 10K than what happens ?

Anything and everything..... If a regulator calls you on the rug because you were getting payments from a company involved in a fraud the door is open for them to ask questions and possibly find something on you.

[Karen37a]

Edit Karen Story # 1010101

[mcaguru]

Anything and everything..... If a regulator calls you on the rug because you were getting payments from a company involved in a fraud the door is open for them to ask questions and possibly find something on you.

A call perhaps? you think they now asking the ISO all kinds of questions regarding all the other transactions Not related to this specific company ?