Investor Education

Investor Alert – Illiquid Alts

Investor Alert – Illiquid Alts

Illiquid alternative investments have been a cause of particular concern for securities regulators and watchdogs in recent years. Among the products that have garnered the most notoriety are non-traded Real Estate Investment Trusts (“REITs”), non-traded Business Development Corporations (“BDCs”), and oil and gas private placements. Non-Traded REITs A REIT is an investment…

Federal District Court in Florida Set to Decide Whether 1 Global Capital Investments Are Securities

Federal District Court in Florida Set to Decide Whether 1 Global Capital Investments Are Securities

A battle is underway in a federal district court in Florida between the SEC and Carl Ruderman, the disgraced former CEO and Chairman of 1 Global Capital, LLC, over whether or not allegedly fraudulent investments issued by 1 Global Capital are “securities” for purposes of applying federal securities laws. The…

Post-Investment Fraud May Qualify as “Predicate Act” for Civil RICO Claims

Post-Investment Fraud May Qualify as “Predicate Act” for Civil RICO Claims

The Racketeer Influenced Corrupt Organizations Act (“RICO”) makes it unlawful for “any person” to conduct, or participate in, the affairs of an enterprise affecting interstate commerce “through a pattern of racketeering activity.” 18 U.S.C. § 1962(c). “Racketeering activity” is defined as conduct that is “chargeable” or “indictable” under certain federal…