Sales Agent of 1 Global Capital LLC Charged with Fraud by SEC.
May 20, 2021, | AtoZ Markets- SEC announced that a sales agent at 1 Global Capital LLC, has been accused of unlawfully selling more than $10.8 million.
The Securities and Exchange Commission (SEC) announced in an official press release that a sales agent at 1ST Global Capital LLC, Roy Y. Gagaza, has been accused of unlawfully selling more than $10.8 million worth of unregistered securities to several unsuspecting
Remember that this scandal involves the company 1 Global Capital LLC for charges of conspiring to commit wire fraud and securities fraud, in connection with an investment fraud scheme that as alleged impacted more than 3,600 investors in 42 different states of US.
This scam raising more than $ 100 million from investors.
What the SEC Said
The SEC first filed charges against the owner of 1 Global Capital back in 2018, on the grounds that they had been reported to have been trading unregistered securities.
Following the charges, SEC stated that the company had stolen millions of dollars from a vast number of investors.
The SEC stated in its official announcement that:
" Roy Y. Gagaza marketed 1 Global securities to investors as providing “peace of mind for some money in a volatile market” and claimed that the investments would achieve high single-digit or low double-digit annual returns".
Read the entire accusation here
According to the complaint, Gagaza marketed 1 Global securities to investors as providing "peace of mind for some money in a volatile market" and claimed that the investments would achieve high single-digit or low double-digit annual returns.
Gagaza earned approximately $403,000 in commissions on his sales, even though he was not registered as broker-dealer or associated with a registered broker-dealer.
Meanwhile, Gagaza consented without admitting or denying the allegations to an injunction, with disgorgement of $ 157,993 with prejudgment interest of $ 16,640, and a $ 30,000 civil penalty.
The SEC also said that during the time offered and sold 1 Global’s securities, Gagaza was not registered as a broker-dealer with the Commission or associated with a registered broker-dealer.
Additionally, 1 Global did not register its securities offering with the Commission, and there was no applicable exemption from registration for this offering.
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