[Karen37a]

Then I’m guessing this is Marcus dancing on the grave of another Florida funder.

ah huh lol


breathe Marcus we are going to a polygraph test...be the ball. be the ball ( this is a joke because we didn't do anything wrong lol)

[Jess]

[QUOTE=Karen37a;102011]You know what the best part of this...people will realize that you can't just drag the rates down to whatever and give out money and not underwrite correctly and not get the money back on collection

it doesn't work that way...so people can stop cheering for companies whose rates are in the teens

I've said from the beginning ... I don't want to sell higher rates... I just know the other is not sustainable

its a big Ponzi w/2 salary, co-mingling cash mess

And some talked down to

[Karen37a]

You have to understand that the SEC under trump is for sale.

Maybe but when you get charged with Ponzi and fraud in Florida...especially on the Elderly and Investments

It triggers the attention of myriad state and federal agencies, each of whom can bring actions against those allegedly involved in the plan to defraud consumers.

The Federal Trade Commission (FTC), which investigates consumer fraud cases.

The Securities and Exchange Commission (SEC), which investigates securities fraud.

The Financial Fraud Task Force, which is a coalition including 94 U.S. Attorneys Offices as well as 20 federal agencies charged with coordinating efforts to investigate and prosecute “significant” financial crimes.

The Internal Revenue Service if the criminal scheme involved tax fraud.

State attorney generals and local prosecutors, who may pursue fraud charges.

A U.S. Attorney, who may pursue fraud charges

A criminal investigation may be triggered if federal or state authorities believe you are selling unregistered investments, or that unlicensed sellers are selling investment products. then they face serious consequences including felony charges.


( they will not just skip off they will make an example out of them) IMO

I got in seriouos trouble over 3 glasses of wine...they go nutso here

[Michael I]

Some isos don't have cash lying around, which is why they are not a "true iso" they are a broker who got a business card that said LLC who sends business to a white label who sends it to the Direct Funder who gets money from an investor or bank

Technically the super iso or white label would be responsible...if they came for it...which they most likely won't unless they knew about the fraud and actively participated in it


* but anything can happen...and I am not a lawyer

There are iso that got hundreds of thousands in commissions from them over time .if they were to claw back even big profitable iso will close down .large iso we can be talking about over a million

[Karen37a]

There are iso that got hundreds of thousands in commissions from them over time .if they were to claw back even big profitable iso will close down .large iso we can be talking about over a million

I would think there is a timeline...some people got their money back? More people are going to pay back the advances...the net results will be X

That's why the slapped a ucc on it to protect what was owed

The fraudsters will be charged and punished with punitive damages etc ...jail.. the money will come from them first

If i placed business in there and didnt know they got the money illegally...I wouldnt be in absolute "fear"


Marcus keeps asking about it so I am scaring him,,, like: do you think the phones were tapped?

( which they might have been so it's not really funny)

***People should ask an Atty **

[Jess]

Maybe but when you get charged with Ponzi and fraud in Florida...especially on the Elderly and Investments

It triggers the attention of myriad state and federal agencies, each of whom can bring actions against those allegedly involved in the plan to defraud consumers.

The Federal Trade Commission (FTC), which investigates consumer fraud cases.

The Securities and Exchange Commission (SEC), which investigates securities fraud.

The Financial Fraud Task Force, which is a coalition including 94 U.S. Attorneys Offices as well as 20 federal agencies charged with coordinating efforts to investigate and prosecute “significant” financial crimes.

The Internal Revenue Service if the criminal scheme involved tax fraud.

State attorney generals and local prosecutors, who may pursue fraud charges.

A U.S. Attorney, who may pursue fraud charges

A criminal investigation may be triggered if federal or state authorities believe you are selling unregistered investments, or that unlicensed sellers are selling investment products. then they face serious consequences including felony charges.


( they will not just skip off they will make an example out of them) IMO

I got in seriouos trouble over 3 glasses of wine...they go nutso here

Well if they charge you then all bets are off. But if you have political or $ leverage you won’t be charged. Unfortunately witnessed first hand. Easy to see how many corrupt players get away with massive fraud.

[Karen37a]

Well if they charge you then all bets are off. But if you have political or $ leverage you won’t be charged. Unfortunately witnessed first hand. Easy to see how many corrupt players get away with massive fraud.

My friends were friends with an ex gov in florida..i still got in trouble for 3 glasses of wine lol

they have mandatory sentencing here...you cant get out of it

[Karen37a]

Florida Mandatory Minimum sentencing

http://ferrerlaw.com/mandatory-minimum-sentences.html

http://macklawpa.com/criminal-defens...y-score-sheet/

Florida’s current system of mandatory minimum sentencing means that our court system, the branch of government that arguably interacts most with those being charged and convicted, often has no discretion over how someone convicted of a crime is sentenced.

if you touch someone with a finger its a battery here

spit ...felony

car accident = agravated battery

( those guys are in big trouble)

And they don't take kindly to Yankees in Financial services ...especially rip off artists


Its going to be like that scene in pulp fiction lol

[Sean Cash]

Anyone else been in this space long enough to remember the last time this happened in MCA? https://www.reuters.com/article/us-c...53N01K20090424

It got turned into a mini-documentary on American Greed: https://www.cnbc.com/id/100001212

[Karen37a]

As part of the
Commission's investigation into this matter, the staff subpoenaed Ruderman for sworn
testimony, but he refused to appear.

1 Global contracted with 100 to 200 third-party vendors to find merchants
8
Case 0:18-cv-61991-BB Document 1 Entered on FLSD Docket 08/23/2018 Page 8 of 34
interested in applying for cash advances. 1 Global paid those companies a finder's fee for each
merchant who received a cash advance. The amount of each finder's fee varied, depending on
the loan amount, the third party's track record with 1 Global, and other factors. 1 Global
determined the amount of the finder's fee in each instance. Through April 2018, 1 Global paid
third parties who solicited merchants approximately $15 million in finder's fees for their efforts.
28. Once a finder located an interested merchant, the merchant would apply directly
to 1 Global for a cash advance. In marketing materials 1 Global sent to sales agents to use in
soliciting investors, 1 Global touted a comprehensive underwriting process and stressed that it
only approved loans to one out of every ten merchants who applied.

I read all their data and it is very clear that they also defrauded the isos. a few hedge funds Through their marketing materials and company statistics, any reasonable iso would have given them business and not be aware of what they were doing imo And they are saying they gave a finders fee and took over the process with expert due dillegence and underwriting skills

They defrauded brokers and isos ...again ...imo

[HDF]

Anyone else been in this space long enough to remember the last time this happened in MCA? https://www.reuters.com/article/us-c...53N01K20090424

It got turned into a mini-documentary on American Greed: https://www.cnbc.com/id/100001212

Not been around since then, but a few ISOs I know operating out of the Regus space in that building. Same building ProMed was based in.

Edit: Not that anyone else there in Hauppauge was or is dirty. Just to be clear.

[Karen37a]

Anyone else been in this space long enough to remember the last time this happened in MCA? https://www.reuters.com/article/us-c...53N01K20090424

It got turned into a mini-documentary on American Greed: https://www.cnbc.com/id/100001212

I thought this was bridge loans...so many its hard to keep up

[mcaguru]

I ask beciase I’ve been in this business forever and I am reading this story and I’m thinking we’re is the damage to the iso folks in this industry. Certainly us reading about 1st global investor fraud had zero cents in this mess so as far as investors we as an industry have zero issues from This Fruad coming to light. So then I ask my self well were is the one risk for us daily funder folks ? (Not me have never had 1 transaction or dealing with this 1st global group) and the only one possible (and I doubt but never the less asked..) is whats if they came after Commission!! Would that harm us daily-funder-folks?! Simply out there caring about our space. !! (as sec complaint spells out how much commissions to ISO’s were paid)

[Jess]

I ask beciase I’ve been in this business forever and I am reading this story and I’m thinking we’re is the damage to the iso folks in this industry. Certainly us reading about 1st global investor fraud had zero cents in this mess so as far as investors we as an industry have zero issues from This Fruad coming to light. So then I ask my self well were is the one risk for us daily funder folks ? (Not me have never had 1 transaction or dealing with this 1st global group) and the only one possible (and I doubt but never the less asked..) is whats if they came after Commission!! Would that harm us daily-funder-folks?! Simply out there caring about our space. !! (as sec complaint spells out how much commissions to ISO’s were paid)

Your potential damage as an ISO is if you syndicate with funders who refer to you as “unsophisticated retail syndicators” and use your money for operating expenses.

[mcaguru]

There are iso that got hundreds of thousands in commissions from them over time .if they were to claw back even big profitable iso will close down .large iso we can be talking about over a million

Correct and that’s the only reason I asked ! Since that would be the damaging part to the iso community.

[MidnightAdvance]

"The Company also had far more difficulty collecting from merchants than it publicly disclosed. For example, in 2016, 210 of the approximately 1,166 MCAs 1 Global funded, a total of 18%, were the subject of collection lawsuits. In 2017, 328 of 1 Global's 2,092 MCAs, a total of 15%, were the subject of collection lawsuits."

"Through April 2018, 1 Global and 1 West made about $348 million in merchant cash advances involving approximately 4,000 MCAs. As of that same date, merchants had repaid approximately $241 million of that amount. As of April 2018, due to collectability issues and the Defendants' misappropriation of investor funds, 1 Global owes investors at least $272 million but only had $27.5 million in its bank accounts. 1 Global does not currently have enough funds to repay investors and filed for bankruptcy in July 2018."



------- This is so confusing, where to begin..

How's it possible that they had only 15% defaults but only $241 million was paid pack out of $348 million funded (which is only 50% of the RTR) ??

[MidnightAdvance]

Why are they so bothered by the "Mercedes benz" lease? it mentions 4 times that "Ruderman used investors funds for his own purpose, like paying for a Mercedes benz"

[WestCoastFunding]

------- This is so confusing, where to begin..

How's it possible that they had only 15% defaults but only $241 million was paid pack out of $348 million funded (which is only 50% of the RTR) ??

Maybe their big deals performed much worse than their small ones.

[MidnightAdvance]

Maybe their big deals performed much worse than their small ones.

What's the difference then, at the end of the day they lost a lot more then 15%

[Karen37a]

"The Company also had far more difficulty collecting from merchants than it publicly disclosed. For example, in 2016, 210 of the approximately 1,166 MCAs 1 Global funded, a total of 18%, were the subject of collection lawsuits. In 2017, 328 of 1 Global's 2,092 MCAs, a total of 15%, were the subject of collection lawsuits."

"Through April 2018, 1 Global and 1 West made about $348 million in merchant cash advances involving approximately 4,000 MCAs. As of that same date, merchants had repaid approximately $241 million of that amount. As of April 2018, due to collectability issues and the Defendants' misappropriation of investor funds, 1 Global owes investors at least $272 million but only had $27.5 million in its bank accounts. 1 Global does not currently have enough funds to repay investors and filed for bankruptcy in July 2018."



------- This is so confusing, where to begin..

How's it possible that they had only 15% defaults but only $241 million was paid pack out of $348 million funded (which is only 50% of the RTR) ??

it was disclosed that he made up all the numbers ..that wasn't his default ratio. Employees questioned the fake numbers and fake statements and that's who probably call the authorities.

I've always wondered how people didn't get reported to certain places. I personally do not like to be pulled into anything like that so I would have just made up a fake screen name and ran away. I guess those employees felt like they would be "culpably negligible" for not reporting and decided enough it enough when they saw it was a house of cards coming down.

He also emailed a hedge fund saying " I am 100% in charge of everything from 630 am to 9 pm" ...People do not play around when they do not get their money back.

I've said it from the beginning. Rich people do not play fairly when you lose them money. In this case, they are justified. They are going to feed him to the dogs, he is done for...and I can bet he pulls anyone who was slightly involved down with him..


**I am sure there is a whistleblower $$ rewards system...those slimy brokers who stole probably turned around and whistle blew for more money $$$$
Old time Nykers have that "do not rat" thing ingrained in their system...its not like that here in Florida, or other states, nor with the new generation ( not all)who feel they deserve participation award for showing up


Thats how the "coffee" stories of me go around ,,,thats the only thing they can really rat on me for " she drinks too much coffee"

[Karen37a]

Your potential damage as an ISO is if you syndicate with funders who refer to you as “unsophisticated retail syndicators” and use your money for operating expenses.

Jess is correct


__

you guys can keep speculating. I didn't tell stories of FBI raiding a firm I worked in that they made movies on...tapping the phones for a year...going thru BILLIONS of dollars of market crashes a few different times and not having a mark on my licence for no reason

People think this is the wild wild west...parts of our business is regulated...and this guy is going to find out how and why. This is a simple thing, he is going to do time IMO

This is also why I do not let brokers who work for me or use my name as an independent contractor to run buck wild.. I know I am responsible for them. I run a tight ship...compliance


ADD **When I was younger they had whiteboards up, the numbers of sales you made...I was on the "pikers" board...we made between 10k-30k a month in the 90s( not 80s happy) which is probably 50k a month today...us small time brokers refused to do something bad for money. When they raided the firm, tapped the phone lines...us pikers went out to dinner together and were like "holy fck pikers united cheers!"...thank the lord we didn't do anything wrong ...even though they were trying to force us to...or you leave and they accuse you of something you didn't do...sounds familiar? Ground Hogs Day.

We got one phone call ...we really didnt know anything then they never called again. ( they had the phones Tapped they already knew who was who)

The good brokers teamed up..we became partners in a small stockbrokerage firm to get away from the madness ...again..Ground Hogs Day. Except it didnt spill all out onto a website and I didnt have a dui.

ps . No where in this story did i commit any infractions in stocks...its the exact opposite, then i went on to teach people how to do bi weekly payment and roll down debt pay it off faster, save money, buy term invest the rest , and gain financial independence from debt traps..seminars, trainings etc

Which is why I only have 4-5 defaults and over 90% renewals 100% with some funders

[Karen37a]

Primerica was buy term invest the difference


Buy term invest the rest

"Everyone welcome to the convention this is not this is not, wh*le life, run for your life fear for your life... this is buy term invest the rest...you have a chance to earn residual income and build a team...you will be in business for yourself but not by yourself...1099 . If you want the chance to get rid of your boss and be independent you are in the Right place at the right time...my name is Elizabeth..thanks for coming. We are going to start this out by saying ...the BUYER is a what? LIAR!! "


"watch my smoke...Sept im am going to kill it...karen"

[Nunya]

What's the difference then, at the end of the day they lost a lot more then 15%

Maybe their big deals performed much worse than their small ones.

WestCoast is right on this. The 15% figure was based on number of transactions, not $ funded. Also, the 15% figure was based on the number of transactions subject to litigation; not all defaults go to litigation (cost/benefit analysis has to be done). Actual $ loss rates are likely higher than 15%

Why are they so bothered by the "Mercedes benz" lease? it mentions 4 times that "Ruderman used investors funds for his own purpose, like paying for a Mercedes benz"

So when they put this in front of a Jury of non-Benz drivers they have no sympathy.

How's it possible that they had only 15% defaults but only $241 million was paid pack out of $348 million funded (which is only 50% of the RTR) ??

@Midnight - There's still a book outstanding, they didn't "lose" it all.

[jdlaw]

Quote Originally Posted by MidnightAdvance View Post
Why are they so bothered by the "Mercedes benz" lease? it mentions 4 times that "Ruderman used investors funds for his own purpose, like paying for a Mercedes benz"


For the same reason the prosecution toted out pics of Manafort's wardrobe, has nothing to do with the case, just
want to play on emotions of a jury, the have's vs the have not's dichotomy.

[Karen37a]

Quote Originally Posted by MidnightAdvance View Post
Why are they so bothered by the "Mercedes benz" lease? it mentions 4 times that "Ruderman used investors funds for his own purpose, like paying for a Mercedes benz"


For the same reason the prosecution toted out pics of Manafort's wardrobe, has nothing to do with the case, just
want to play on emotions of a jury, the have's vs the have not's dichotomy.

And the French Revolution

Also, Brokers on these sites getting jealous of people who produce real numbers

That jury is going to show no mercy to him... it's going to be a bloodbath

I am not kidding when I say they do not like Financial people and new yorkers who rip people off. ( if you are from Florida then you know)

In my Dui case the judge said " are you in Financial Services"... I said yes
he said "figures"

then he said ...never in all my days did i see someone treated so leniently...I said " I have never been in trouble in my life , i never had a driving ticket"...and my lawyer kicked me about 50 times

THEN he called for my Ny drivers licence ..and record ...he said ...this is blank , this is blank...I said...i never had a driving ticket

He said "this is inadmissable" i said ...so it was going to be admissible if it was bad? But not good?...then my lawyer kicked me a few more time