A bankruptcy trustee recovered and distributed $12 million to thousands of creditors who were victims of a $332 million investment fraud, the South Florida Business Journal reported. Cassel Salpeter and Co. chairman and co-founder James S. Cassel, who was appointed director of 1 Global Capital's estate in bankruptcy court, said that about 3,750 creditors that invested in the company received a payment. To date, Cassel has recovered $124 million on behalf of 1 Global Capital victims, after distributing an initial $112 million payment to investors in 2019. Cassel said that the liquidating trust will continue to pursue actions to generate additional returns to creditors. Hallandale Beach-based 1 Global Capital, which provided loans to small businesses, filed for chapter 11 bankruptcy in 2018. Soon after the bankruptcy filing, the U.S. Securities and Exchange Commission filed civil fraud charges against the company and former CEO Carl Ruderman, claiming they fraudulently raised $332 million from investors. According to the SEC lawsuit, 1 Global Capital overstated the value of investors’ accounts and their rate of returns and misappropriated at least $32 million to personally benefit Ruderman. Ruderman agreed to disgorge $32 million in ill-gotten gains and pay a $15 million civil penalty to settle the charges. Many of the scheme's victims were elderly individuals who invested between $50,000 and $100,000, Cassel said.
