Financial Advisor James “Jim” Heafner (1st Global Capital, LLC) Customer Complaints

The Wolper Law Firm, P.A. is currently investigating claims against James “Jim” Heafner and Heafner Financial Solutions in Charlotte, North Carolina. The Wolper Law Firm, P.A. has been retained by investors of James “Jim” Heafner and Heafner Financial Solutions, who were sold unregistered promissory notes issued by 1st Global Capital, LLC and 1st West Capital, LLC. The Wolper Law Firm, P.A., P.A. has also filed lawsuits and arbitration claims against other Financial Advisors who sold 1st Global Notes in different parts of the country.

As previously reported by the Wolper Law Firm, P.A., on July 27, 2018, 1st Global Capital and 1st West Capital filed for bankruptcy protection in the Southern District of Florida. It was revealed in bankruptcy court filings that the “Securities and Exchange Commission (SEC) opened an investigation into the companies’ activities related to alleged possible securities law violations, including the alleged offer and sale of unregistered securities, the alleged sale of securities by unregistered brokers, and the alleged commission of fraud in connection with the offer, purchase and sale of securities.” The United States Attorney has since opened a parallel investigation into the business practices of the companies.

On August 23, 2018, the SEC filed a Complaint for Injunctive Relief against 1st Global Capital, 1st West Capital, Carl Ruderman and various entities controlled by Carl Ruderman. The SEC’s Complaint was originally filed under seal but, on August 29, 2018, was released to the public. The ten count Complaint alleges securities fraud.

The SEC alleges “1st Global, a private South Florida firm, fraudulently raised more than $287 million from more than 3,400 investors to fund its business of offering short-term financing to small and medium-sized businesses. 1st Global used a network of bared 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.”

During the course of the SEC’s investigation, it found that 1st Global and its principal, Carl Ruderman, “misappropriated at least $35 million of investor money, at least $28 million of which was paid (1) directly to Ruderman…to fund Ruderman’s lavish expenses such as a luxury vacation to Greece and monthly payments for his Mercedes Benz. 1st Global and its sales representatives also made numerous other material misrepresentations and omissions to investors…and violated Section 17(a) of the Securities Act of 1933…and Section 10(b) and Rule 10b-5 of the Exchange Act.”

The network of sales agents utilized by 1st Global to market and sell promissory notes to investors principally consisted of unregistered/registered investment advisors and brokers with checkered regulatory histories. The sales agents were paid commissions of 3% for “new money” and .75% if investors “rolled over” their notes to a new term. Jim Heafner was among those sales agents

The sales agents had a duty to conduct appropriate due diligence regarding the investments they recommended, which included understanding the characteristics and risks associated with the investments and accurately communicating same to investors. In the case of 1st Global, the investors we have heard from were told that the 1st Global promissory notes were safe, conservative, short-term investment vehicles. None of the risk factors were discussed and, from all indications, very little due diligence was performed.

If you or someone you know were sold promissory notes issued by 1st Global Capital or 1st West Capital through James “Jim” Heafner or Heafner Financial Solutions, and you experienced investment losses, please contact the Wolper Law Firm, P.A. at 800.931.8452 or by email at mwolper@wolperlawfirm.com to discuss your specific situation and the legal options available. The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration.

Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters.

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]