INVESTOR UPDATE—How Can I Recover My Investment In 1st Global Capital And 1st West Capital?

What Is Known So Far

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.  The investigation is ongoing and more will develop in the coming days and months.

Right now, investors are classified as creditors and will not receive a distribution of any assets unless approved by the bankruptcy court.  Distributions traditionally do not occur until the end of the bankruptcy proceeding, which could take years, and generally amount to cents on the dollar.

What Is 1st Global Capital And 1st West Capital’s Business Structure?

1st Global Capital, LLC and 1st West Capital, LLC are based in Hallandale, Florida.  The companies operate in the financial services industry, offering direct merchant cash advances to small businesses across the United States.  Through independent sales organizations, underwriters and other funding agents, the companies offer a variety of short-term cash advances.  The companies raise capital to finance their business operations through private loans typically repayable in nine months.  The loans are memorialized by promissory notes.

How Did 1st Global Capital And 1st West Capital Raise Money?

It is alleged that registered and unregistered brokers and investment advisors sold promissory notes issued by 1st Global Capital, LLC and 1st West Capital, LLC to retail investors.  The promissory notes were marketed as safe, short term, fixed income instruments that could generate above-average rates of return for investors.  Investors were neither aware that 1st Global Capital, LLC and 1st West Capital, LLC were in a precarious financial condition nor that the companies were being investigated by the SEC and US Attorneys’ office for securities fraud.

What Should I Do If I Invested In 1st Global Capital Or 1st West Capital?

You should immediately contact a qualified securities lawyer to evaluate your recovery options.  If promissory notes issued by 1st Global Capital or 1st West Capital were recommended to you by a Financial Advisor, Investment Advisor, Brokerage Firm, Insurance Agent or financial services industry professional, you may be able to pursue claims against those individuals and entities to recover the entirety of your investment losses.  In most states, financial services industry professionals have a fiduciary duty to conduct appropriate due diligence regarding an investment prior to making a recommendation.  In the absence of appropriate due diligence, causes of action may exist under both state and federal law, including violation of applicable securities laws.  These claims may be pursued in FINRA arbitration, arbitration through another forum or, in the absence of an arbitration agreement, in court.

If you or someone you know were sold promissory notes issued by 1st Global Capital or 1st West Capital, and you experienced investment losses, 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.

Attorney Matthew Wolper

Matt 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]