SEC Charges an Individual in Connection with 1 Global Capital Scam

The US Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (SEC) announced yesterday that it has charged an additional individual linked with the selling of unregistered securities of 1 Global Capital LLC.

According to the official press release, Roy Y. Gagaza, one of the sales agents of 1 Global, unlawfully sold over $10.8 million worth of unregistered securities to numerous investors. Gagaza earned more than $400,000 in commissions on his sales.

In 2018, the SEC charged the owner of 1 Global Capital and other relevant individuals for selling unregistered securities and defrauding more than 3,600 investors. The commission mentioned that the company stole millions of dollars from several investors. The SEC already charged nine of the top sales agents of 1 Global for violation of registration rules.

“The SEC's complaint alleges that the defendant, Roy Y. Gagaza, one of 1 Global's top sales agents, unlawfully sold more than $10.8 million of 1 Global's unregistered securities to numerous investors. 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,” the SEC mentioned in the official announcement.

In September 2020, the SEC charged a Florida-based businessman in connection with a $6.8 million fraudulent crypto scheme.

SEC’s Awards

Since the start of 2020, the SEC has accelerated the Whistleblower Whistleblower A whistleblower is an individual who manages to provide information or activity within a private or public organization that is deemed illegal, unethical, or not correct. In many countries, including the United States, whistleblowers are protected by law and in some cases can even recoup rewards if their information leads to successful prosecution.In the context of the financial services industry, whistleblowers play a large role in oversight, helping unmask several episodes of illicit behavior A whistleblower is an individual who manages to provide information or activity within a private or public organization that is deemed illegal, unethical, or not correct. In many countries, including the United States, whistleblowers are protected by law and in some cases can even recoup rewards if their information leads to successful prosecution.In the context of the financial services industry, whistleblowers play a large role in oversight, helping unmask several episodes of illicit behavior Read this Term program and awarded millions of dollars to different whistleblowers. In the latest SEC award, the commission distributed more than $31 million to whistleblowers in two enforcement actions.

“Whistleblowers play a critical role in an investigation, whether at the outset or during the course of an investigation,” Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower mentioned in the official press release.

Earlier this month, the SEC awarded $22 million to two whistleblowers.