Carl Ruderman, the former chairman of 1 Global, was sentenced on Jan. 31 to five years in prison for his role in a $250 million securities fraud scheme, essentially bringing an end to this long-running case that involved many. The judge also ordered Ruderman to pay a forfeiture money judgment in the amount of $285,599,532. Ruderman was accused of making false statements to investors about the company's short term business financing offerings and using investor money for his own personal expenses. He also diverted money to businesses that benefited him and his family.
Four other co-conspirators were also sentenced in connection with the scheme.
Alan G. Heide, 1 Global's former Chief Financial Officer, received a 60-month prison sentence and over $57 million in restitution.
Andrew Dale Ledbetter, a former 1 Global executive, was sentenced to 36 months in prison for conspiring to commit wire and securities fraud.
Jan D. Atlas, another former 1 Global executive, received a 30-month prison sentence for his involvement in the scheme.
Steven A. Schwartz, a lawyer previously associated with 1 Global, was also sentenced to 18 months in prison.
1 Global, a company that provided short-term financing to businesses in the United States, filed for bankruptcy in 2018. The company's collapse left many investors with significant losses.
Ruderman's sentencing is a reminder of the serious consequences that can result from securities fraud. Investors should be wary of any investment that sounds too good to be true, and they should always do their own research before investing any money.