The US Securities and Exchange 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.
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In September 2020, the SEC charged a Florida-based businessman in connection with a $6.8 million fraudulent crypto scheme.
Since the start of 2020, the SEC has accelerated the whistleblower 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.