2 Veteran South Florida Lawyers Sentenced for Financial Fraud

In order to attract investments, the owner of 1 Global, Atlas, Ledbetter and others made false and misleading representations to investors and potential investors in marketing materials and periodic account statements about to the profitability of 1 Global's business.

But prosecutors say the scam unraveled as investors, investment advisers and regulators began to question the operation of the business; whether 1 Global was offering or selling a security; and whether the investment offering was required to be registered with the U.S. Securities and Exchange Commission.

Ledbetter and Atlas knew that if 1 Global's investment offering were determined to be a security, it would undermine the ability of 1 Global to raise funds from retail investors and continue to operate without substantial additional expenses and reporting requirements, prosecutors said. Therefore, the lawyers knew that would undermine the profits and fees on which Ledbetter and other principals at the company would be able to obtain from 1 Global's operation, prosecutors argued.

Around 2016, Atlas wrote two opinion letters which contained false information that he allegedly knew would be used by 1 Global to operate the business unlawfully, according to court documents. The letters falsely described how the investments worked, and included deceptive statements that omitted pertinent information, the press release from law enforcement stated.

According to court documents, Ledbetter allegedly has fraudulently collected more than $100 million from investors since 2015, through his own pitches and investment advisers he brought to 1 Global.

Ledbetter received $3 million from 1 Global, which came from commissions, and Atlas collected around $627,000 from him, prosecutors argued.

Ledbetter held himself out to investors and investment advisers as outside counsel to 1 Global, and also personally vouched for 1 Global in pitches and marketing materials, without disclosing his extravagant commissions, according to court filings.

Assistant U.S. Attorney Elizabeth Young is prosecuting the case.

Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture related to the matter.

Ledbetter's attorneys, Jeffrey Sloman and Erica Perdomo of Stumphauzer Foslid Sloman Ross & Kolaya in Miami, did not respond to requests for comment by press time.