Securities Fraud: The 1 Global Capital, LLC and Roy Y. Gagaza Case

The Securities and Exchange Commission has charged an agent working for 1 Global Capital, LLC for violations concerning the trading of unregistered securities there. The SEC accused him of selling more than $10.8 million worth of securities which were not registered with the commission, to several unsuspecting investors.

1 Global made high-interest loans to small businesses akin to high interest “payday” loans. 1 Global originated loans to investors by selling contracts for future placement of money on equities investment bank deposits. The unregistered securities consisted of shares that should have (which totaled more than $10 million) disposed to unsuspecting customers, who were simply looking for short-term investments. Financial advisers and other intermediates were promised significant commissions if they helped 1 Global raise money.

The SEC claims that he unlawfully sold more than $10.8 million worth of unregistered securities to investors through a company called 1 Global Capital LLC

He has been accused of selling unregistered securities to several unsuspecting investors with promises of shares in principal repayments.

Recognizing Securities Fraud

1. How the SEC protects investors and the importance of their oversight

There are many steps that investors can take to protect themselves against fraud. The Securities and Exchange Commission (SEC) is a government agency committed to protecting all Americans from securities fraud, which includes misrepresentations made by brokerage firms regarding investments or financial products.

The SEC has been successful in prosecuting individuals who have perpetrated such crimes, yet there remains room for improvement when it comes to enforcement efforts surrounding investment advisers and other intermediates. This poses a challenge as these intermediaries often receive incentives for bringing new clients into fund management businesses. A lack of action on this front could facilitate more investor victimization while also creating an uneven playing field within the markets with individual brokers driven less by ethics than competition-driven monetary interests.

2. The difference between fraud and manipulation

There is a significant difference between fraud and manipulation. Fraud is when a broker makes false claims about the value of an investment. Manipulation, on the other hand, is when brokers use various tactics to get their own trades executed at favorable prices or to prevent any unfavorable execution for themselves.

3. When to report securities fraud to the SEC

If you believe you’ve been a victim of securities fraud, there are a few things you should do. First, document what happened and how much money was lost as well as the date and time of your investment. Next, call or email the Securities Exchange Commission (SEC) to report securities fraud by submitting a complaint form online: https://www.sec.gov/tcr

4. Examples of fraudulent activity in financial markets

Unfortunately the list of frauds in the financial markets is endless, ranging from outright theft to widespread manipulation and insider trading.

The following are some examples of fraudulent activity in financial markets:

• Touting stocks by publishing false information about a company or its prospects
• Falsely reporting the prices at which orders were executed on an exchange for personal gain (slipping)
• Deliberately sending misleading signals through communications channels such as chatrooms, instant messaging services and message boards (pump & dump scheme)
• Stealing money from trading accounts by obtaining unauthorized access using passwords obtained through social engineering techniques
• Siphoning funds from clients’ investment portfolios with falsified balance statements
• Simply selling securities, when you are neither a registered broker or securities professional

Recovering money from securities fraud

1. How to recover money from securities fraud

Securities fraud is a federal crime and, as such, there are clear repercussions for those who break the law. The Financial Industry Regulatory Authority (FINRA) has established guidelines on how to recover money from securities fraud that you may have lost or invested in due to the criminal activities of someone else

They suggest contacting an attorney immediately after discovering suspicious activity, so they can file a complaint with FINRA’s Office of Investigations. You should also keep records about your losses so if this happens again but at another company you’ll be able to show evidence supporting your claims. This will allow them to more easily issue refunds without going through lengthy investigations themselves.

2. The process of recovering your money through the courts

The process for recovering your money can be a long and arduous one. The first step is hiring a lawyer to file an arbitration claim and being able to show evidence of the fraud

The next steps could include filing for bankruptcy, which will protect your assets when creditors come knocking on your door; this is also important because you’ll need proof that you couldn’t pay back what was owed in order to avoid criminal prosecution.

After obtaining legal protection, if anyone tries to collect from you, they can be sued or arrested by law enforcement agencies who have jurisdiction over these cases. You may want to check with them first before taking any action against individual debt collectors.

3. Why you should hire a professional

You could try to go it alone in recovering your money but not hiring a professional likely contributed to you being in this mess in the first place. PayBack is a company that specializes in recovering money from those who owe it to you.

Their services are designed for people like you, so the chances of a successful recovery will be much higher than if you tried on your own with no specific experience or training.

Rather than trying to collect the debt all by yourself and risking being taken advantage of again, let PayBack do everything for you!