PENDING CRIMINAL DIVISION CASES
1 Global Capital, LLC
United States v. Alan G. Heide (19-CR-60231-RKA)
United States v. Jan D. Atlas (19-CR-60258-RKA)
United States v. Steven A. Schwartz (20-CR-60003-RKA)
United States v. Andrew D. Ledbetter (20-CR-60103-RKA)
Court Assigned: These cases are assigned to the U.S. District Court for the Southern District of Florida, U.S. Federal Building and Courthouse, 299 East Broward Boulevard #108, Fort Lauderdale, FL 33301. The assigned judge is U.S. District Judge Roy K. Altman.
All updates for the 1 Global Capital, LLC cases can now be found here: https://www.justice.gov/usao-sdfl/1Global-Capital.
Latest Update: On July 9, 2021 Schwartz was sentenced to 24 months’ imprisonment to be followed by one (1) year supervised release. The court also ordered Schwartz to pay restitution in the amount of $36,362,392 with his co-conspirators.
The sentencing hearing for defendant Jan Douglas Atlas previously scheduled for August 23, 2021, has been reset for August 19, 2021 at 10:00 AM in Miami Division, 400 North Miami Avenue, Courtroom 12-4 before Judge Roy K. Altman.
On September 29, 2020 defendant Andrew Dale Ledbetter was charged by information with one count of conspiracy to commit securities fraud and wire fraud, in violation of 18 U.S.C. § 371. Ledbetter’s sentencing hearing is currently scheduled to be held via ZOOM and has been reset for August 27, 2021 at 1:30 PM before Judge Roy K. Altman. (Zoom VTC Meeting ID: 161 815 8203, Passcode: 7777)
Overview: 1 Global Capital LLC (1 Global) was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans to small businesses at high interest rates, termed merchant cash advance loans (“MCAs”). To fund these loans, 1 Global obtained funds from investors nationwide, offering short-term investment contracts that promised to “place” the investors’ money in MCAs. The investors would supposedly receive a proportionate share of the principal and interest payments as the loans were repaid. 1 Global raised money using investment advisors and other intermediaries, with promises to these advisors of significant commissions. 1 Global also represented to the investors that they could expect to receive high single digit and low double-digit returns. In total, from 1 Global’s inception in 2013 through in or around July 2018, when the company declared bankruptcy, 1 Global raised hundreds of millions of dollars from thousands of investors.
Individual #1, a resident of Miami-Dade County, was the Chairman and Chief Executive Officer (“CEO”) of 1 Global. Individual #1 exercised ultimate control over the operations of 1 Global and maintained significant involvement in the company’s daily operations. Individual#1 solicited investments from outside investors and investment advisors working on behalf of their investing clients.
Alan G. Heide, a resident of Palm Beach County, worked in several positions at 1 Global, including as Chief Financial Officer (“CFO”), Executive Vice President, and as Director of Syndicate Partner Relations. Heide reported to Individual #1 at 1 Global.
Steven A. Schwartz, a resident of Palm Beach County, was employed as a director of 1 Global. In marketing materials used to raise money from investors, Schwartz was sometimes identified as the Chief Operating Officer (“COO”) of 1 Global. Schwartz was also the brother-in-law of Individual #1.
Dale Ledbetter, a resident of Broward County, was an attorney licensed in the State of Florida who worked at Law Firm #1. Starting in approximately 2015, Dale Ledbetter also acted in a fundraising capacity at 1 Global, in which he solicited potential investors and investment advisors. Dale Ledbetter had frequent contact with Individual #1, with whom he sometimes solicited investors together on 1 Global’s behalf.
Jan D. Atlas, a resident of Broward County, was an attorney licensed in the State of Florida and a partner at Law Firm #1. Atlas purported to serve as outside legal counsel for 1 Global. Atlas had regular contact with Individual #1.
In order to attract investments, Individual #1, Alan G. Heide, Steven A. Schwartz, Dale Ledbetter, and others made false and misleading representations to investors and potential investors as to the profitability of 1 Global’s business in marketing materials and periodic account statements. 1 Global promised investors that all or nearly all of that money would be applied to various MCA agreements with the investor supposedly receiving a portion of the proceeds paid back by the merchants. In reality, according to court documents, the 1 Global business was far less profitable than advertised. Furthermore, the conspirators misappropriated large amounts of cash for themselves, including, primarily, to support the lavish lifestyle of Individual #1 and his family members. 1 Global also paid substantial commissions and other expenses with investor funds without disclosing the extent of these payments.
According to court documents, 1 Global made false statements to investors that gave the impression that 1 Global had an independent auditor. These misrepresentations were allegedly made in monthly statements mailed to investors that falsely showed profitable investments. The statements gave the false impression that the finances had been independently verified by an outside audit firm. As 1 Global continued to lose money over time, the cash shortfall continued to increase, and 1 Global resorted to using new investor funds to pay older investors, before its eventual collapse in July 2018.
Court documents further revealed that 1 Global had received written legal advice authored by an outside law firm retained by 1 Global, and that in memoranda received from this outside law firm, the firm opined that 1 Global was improperly offering unregistered securities, in violation of federal law. Despite having received this advice in or around June and July 2016, Individual #1, Steven A. Schwartz, Alan G. Heide, Jan D. Atlas, Dale Ledbetter, and their co-conspirators continued to operate the business and hid the advice contained in the legal memoranda from investors, failing to disclose the risks it described. Moreover, instead of following this advice, Individual #1 and co-conspirators not only concealed it from the investors, but also sought false legal cover from Jan D. Atlas, who authored opinion letters based on false and fraudulent information, stating that 1 Global’s offerings were not securities. These letters enabled 1 Global to continue operating and raising investor funds.
1 Global operated from 2013 through approximately July 27, 2018, when it filed for bankruptcy. As of that time, 1 Global had more than 3,600 investors and had raised more than $330 million, and its own internal documents showed a $50 million cash deficit. The bankruptcy case, In re: 1 Global Capital LLC, et al., No. 18-19121-RBR (S.D. Fla.), remains pending.
On January 23, 2020, defendant Alan G. Heide was sentenced to 5 years imprisonment, followed by 3 years of supervised release. On November 18, 2020, the court ordered Heide to pay restitution in the amount of $57,671,799.29, joint and several with his co-conspirators.
For more information about United States v. Andrew Dale Ledbetter, please see below:
Press Release – September 29, 2020
For more information about United States v. Alan G. Heide, please see below:
Press Release – August 15, 2019
For more information about United States v. Jan D. Atlas, please see below:
Press Release – September 17, 2019
For more information about United States v. Steven A. Schwartz, please see below:
Press Release – January 6, 2020
Press Release – January 9, 2020
Victim Impact Statement: Pursuant to the court’s order in United States v. Heide, victims wishing to submit impact statements should do so no later than July 1, 2020. If you would like to submit a Victim Impact Statement you may do so by mailing the Victim Impact Statement below to: Victim Witness Unit, U.S. Department of Justice, Criminal Division, Fraud Section, 10th & Constitution Avenue, NW, Bond Building, Room 4416, Washington, DC 20530. You also may submit the Victim Impact Statement via email at Victimassistance.email@example.com or by fax at: (202) 514-3708. Please note: As a result of the COVID-19 pandemic response, statements submitted by regular mail and fax may be delayed. For that reason, victims are highly encouraged to submit victim impact statements by e-mail to: Victimassistance.firstname.lastname@example.org.
The information on this website will be updated as new developments arise in the case. If you have any questions, please call the Victim Assistance Line toll-free at (888) 549-3945 or email us at email@example.com. Please note: As a result of the COVID-19 pandemic response, the most reliable method of contacting victim-witness staff is via e-mail. If you need to speak to someone over the phone, let victim-witness staff know in your e-mail, and someone will call you as soon as practicable.
Presumption of Innocence: It is important to keep in mind that defendants are presumed innocent until proven guilty and that presumption requires both the court and our office to take certain steps to ensure that justice is served.
Crime Victims’ Rights Act and Right to Retain Counsel: The Crime Victims’ Rights Act (18 U.S.C. § 3771) applies only to victims of the counts charged in federal court, and thus individuals may not be able to exercise all of these rights if the crime of which the individual is a victim was not charged. Section 3771(c)(2) of this Act requires that we advise you that you have the right to retain counsel. Although the statute specifically sets forth your right to seek advice of an attorney with regard to your rights under the statute, there is no requirement that you retain counsel. The Government may not recommend any specific counsel, nor can the Government (or the Court) pay for counsel to represent you. Government attorneys represent the United States.
If you elect to obtain counsel to represent your interests, please have your attorney notify this office in writing at: U.S. Department of Justice, Criminal Division, Fraud Section, 10th & Constitution Avenue, NW, Bond Building, 4th Floor, Washington, DC 20530, Attention: Victim Witness Unit; fax: (202) 514-3708; or email: firstname.lastname@example.org. If you elect not to retain counsel to represent your interests, you do not need to do anything.