Lose money after investing in a GPB Capital Holdings Fund? take action
We can help recover your investment loss. Free consultations, always. CONTACT US

INVESTOR FRAUD ALERT—The SEC Has Launched An Investigation Into 1st Global Capital And 1st West Capital Regarding Suspected $283 Million Loan Fraud

The Wolper Law Firm has launched an investigation into 1 Global Capital and 1 West Capital, two Hallandale, Florida based businesses suspected of being involved in a $283 million loan scheme involving hundreds of investors.   On July 27, 2018, 1st Global Capital and 1st West Capital filed for bankruptcy in the District Court for the Southern District of Florida.

According to its website, 1st Global Capital and 1st West Capital are affiliated with 1st Global Capital Financial Services, which provides fast, small business financing through specialized solutions.  1st Global Capital and 1st West Capital have served a variety of businesses, including automotive, e-commerce, events, franchise, hospitality, restaurant and transportation.

1st Global Capital and 1st West Capital raised capital to fund their business operations through private loans from retail investors, typically payable in nine months.  The companies offered investors a high interest rate in exchange for their investment.

According to the unaudited books and records of 1st Global Capital and 1st West Capital, the companies have approximately $238 million of accounts receivable, $21 million of intercompany accounts, and $17.3 million in unrestricted cash.  The books and records also reflect outstanding loans of $283 million.

Before 1st Global Capital and 1st West Capital filed for bankruptcy, the Securities and Exchange Commission (SEC) opened an investigation into the companies’ activities.  Specifically, the SEC is investigating whether the loans sold to investors required registration and whether said loans were sold to investors through unregistered brokers.  Based on information gathered by the SEC, it is has been in communication with the United States Attorneys’ Office and is assessing potential violations of applicable securities laws.

What appears clear at this point is that investors who invested in the loan scheme will very likely lose a considerable amount of their investment even after the outstanding accounts receivable are collected by the bankruptcy receiver.

This purported ponzi scheme resembles the $1.2 billion Woodbridge Wealth ponzi scheme that was uncovered in late 2017.  Similar to 1st Global Capital and 1st West Capital, Woodbridge used unregistered brokers to sell promissory notes to investors with the promise of above-average returns.

If you or someone you know invested in loans offered by 1st Global Capital and 1st West Capital, please contact the Wolper Law Firm 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 represents investors nationwide in securities litigation and arbitration.

Matt Wolper, the Managing Principal of the Wolper Law Firm, 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.

Now is the time to talk to an investment loss recovery lawyer. We can help recover your investment loss. Free consultations, always.

or call 800.931.8452
Main Office - Fort Lauderdale

1250 S. Pine Island Road
Suite 325
Plantation, FL 33324
Phone: 800.931.8452

Additional Office Locations (by appointment only)

3355 Lenox Road
Suite 7
Atlanta, GA 30326


13295 N. Illinois St.
Suite 314
Indianapolis, IN 46032

New York City

275 Madison Avenue
Suite 705
New York, NY 10016


3102 Maple Ave.
Suite 400
Dallas, TX 75201


5933 NE Win Sivers Drive
Suite 205
Portland, OR 97220


7900 E. Union Ave.
Suite 1100
Denver, CO 80237


1700 Park Street
Suite 103
Naperville, IL 60563


1001 Fourth Ave.
Seattle, WA 98154