[Nunya]

https://www.sec.gov/litigation/compl...pr2018-171.pdf

From page 16.

Often the Company would not generate enough money from the MCAs to fully pay redeeming investors, forcing the Company to use new investor funds to pay off redeeming investors.

Isn't there a name for this? Starts with a P... Pon... Pon... Ponzi?

[Michael I]

did a broker get commission on the 40 million dollar deal they did

[Happy Horse Shit]

What amazes me more is that with that many different people investing money, not one Tax CPA ever questioned any of these folks about "the investment". The fastest way for any financial professional to weed out a frauds is find out who the accounting firm is for the company--in a fraud it is always some piker that has no office and the scam company is his only client, also check to see who the listed auditor is and then call them and ask if they are actually contracted to that company to perform an audit, again if the auditor is like the accounting firm--no one has ever heard of them---you don't need to go no further --run in the opposite direction and call your state financial services office and tell them-- and maybe they can save some suckers that did no due diligence.

[Jess]

90% if time. But if auditors are raking in ridiculous above market fees they will sign anything. Even if there is an audit done-the question should be “how much did you pay your auditing firm for all services performed during the year”. I’ve seen PWC phone it in for fees and regional “roll up” firms will sign anything if the price is right. Hey MCA company! Is there a reason why you paid over $200k in audit fees last year? Yep that’s right 200k.

[Shorebird]

40 Million Dollar MCA. Wow!

[Karen37a]

https://www.sec.gov/litigation/compl...pr2018-171.pdf

From page 16.


Isn't there a name for this? Starts with a P... Pon... Pon... Ponzi?

That's why they are going to take his house, his car, his dog....everything

And they are going to come full force for the money

And its the SEC and their lawyers...state lawyers, insurance lawyers ...individual lawyers

[Karen37a]

See this is what I heard thru the grapevine and why I said it is bad bad bad bad

1 Global used a network of barred brokers, registered and unregistered investment
advisers, and other sales agents - to whom they paid millions in commissions - to offer and sell
unregistered securities to investors in no fewer than 25 states.

[Michael I]

What amazes me more is that with that many different people investing money, not one Tax CPA ever questioned any of these folks about "the investment". The fastest way for any financial professional to weed out a frauds is find out who the accounting firm is for the company--in a fraud it is always some piker that has no office and the scam company is his only client, also check to see who the listed auditor is and then call them and ask if they are actually contracted to that company to perform an audit, again if the auditor is like the accounting firm--no one has ever heard of them---you don't need to go no further --run in the opposite direction and call your state financial services office and tell them-- and maybe they can save some suckers that did no due diligence.

correct me if i am wrong but it did not seem like any one person gave to much money . seems they were smart to have 5000 people as opposed to 500 that would have looked in deeper

[Jess]

To button this up. The takeaway is that the SEC is rather feckless. They are reactive and they had no choice to act due to bankruptcy. They are not proactive so the syndication cash misappropriations will continue unabated.

[WestCoastFunding]

See this is what I heard thru the grapevine and why I said it is bad bad bad bad

All of them were 1099s tho.

[Karen37a]

To button this up. The takeaway is that the SEC is rather feckless. They are reactive and they had no choice to act due to bankruptcy. They are not proactive so the syndication cash misappropriations will continue unabated.

Well when they slap this guy silly ...maybe some other people will wake up

[Karen37a]

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 legitimate 1099 brokers? pfft

[mcaguru]

can they come after the ISO WORLD for paid commissions ?> meaning at the time of funding the commission is technically NOT related to the funding its capital in a bank (that belongs to investors perhaps?) so will they come after innocent ISO's for commissions paid ? that would really hurt our space! That’s the only small concern for those that worked with them. Otherwise the fallout does not effect the iso world sadly just the investors that I doubt came from iso world.

[Jess]

can they come after the ISO WORLD for paid commissions ?> meaning at the time of funding the commission is technically NOT related to the funding its capital in a bank (that belongs to investors perhaps?) so will they come after innocent ISO's for commissions paid ? that would really hurt our space!

No

[mcaguru]

No

if thats the case then i dont see long term effects to our space. if letters go out to isos that they have to repay commissions ----- that can have a real bad effect on our industry i don't think ISO's have funds laying around to repay old old commissions!

[rdgllc]

if thats the case then i dont see long term effects to our space. if letters go out to isos that they have to repay commissions ----- that can have a real bad effect on our industry i don't think ISO's have funds laying around to repay old old commissions!

That would be a disaster although I don't foresee that happening (hopefully).

[Karen37a]

if thats the case then i dont see long term effects to our space. if letters go out to isos that they have to repay commissions ----- that can have a real bad effect on our industry i don't think ISO's have funds laying around to repay old old commissions!

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

[Nunya]

can they come after the ISO WORLD for paid commissions ?> meaning at the time of funding the commission is technically NOT related to the funding its capital in a bank (that belongs to investors perhaps?) so will they come after innocent ISO's for commissions paid ? that would really hurt our space!

This is like the 10th time you've asked. You do business with them? Why you so worried?

[Karen37a]

This is like the 10th time you've asked. You do business with them? Why you so worried?

I picked up on that too..."hes not in the closet" lol

thats why I am scaring him with the phone tap thing, which might have happened

[WestCoastFunding]

This is like the 10th time you've asked. You do business with them? Why you so worried?

Hmmm. Marcus, did Cresthill use 1st Global?

[mcaguru]

Hmmm. Marcus, did Cresthill use 1st Global?

zero! not 1 file no agreement. nada

[Karen37a]

zero! not 1 file no agreement. nada

you said an iso of yours did...then you were panicking...i made a mental note " do not commit a crime with Marcus, he tells on himself" lol

[WestCoastFunding]

Man, let’s just imagine they could come after ISO’s commissions. And let’s pretend that Marcus (or some other funder) referred busines to 1st Global. They’d get stuck returning commissions and wouldn’t be able to pass off the losses to the ISOs that they paid 67-80% of the commission to.

Marcus, that’s just a hypothetical. Or is it?

[Karen37a]

Man, let’s just imagine they could come after ISO’s commissions. And let’s pretend that Marcus (or some other funder) referred busines to 1st Global. They’d get stuck returning commissions and wouldn’t be able to pass off the losses to the ISOs that they paid 67-80% of the commission to.

Marcus, that’s just a hypothetical. Or is it?

those isos could never give the commission back...hazzard of having sub isos

[WestCoastFunding]

zero! not 1 file no agreement. nada

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