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This case was last updated from PACER on 05/16/2021 at 08:48:06 (UTC).

Securities and Exchange Commission v. Ortiz

Case Summary

On March 17, 2021, the Securities and Exchange Commission (“SEC”), represented by Robert Kent Levenson Attorney at the SEC's Florida Regional office filed a civil enforcement against David P. Ortiz (“Defendant”), seeking permanent restraint, disgorging ill- gotten gains and civil monetary penalties for raising more than $6 million for 1 Global from the offer and sale of securities in unregistered transactions to at least 60 investors. This case was filed in U.S. District Court in the Southern District of Florida with Judge Roy K. Altman and Judge Patrick M. Hunt presiding.

In its complaint, the SEC alleged that, “David P. Ortiz served as an unregistered broker on behalf of 1 Global Capital, LLC (“1 Global” or “the Company”), a South Florida merchant cash advance company. During that time, Ortiz raised more than $6 million for 1 Global from the offer and sale of securities in unregistered transactions to at least 60 investors. Ortiz earned at least $149,000 in commissions from those sales,”. The SEC also alleged that  “During the time he offered and sold 1 Global’s securities, Ortiz was not registered as a broker-dealer with the Commission or associated with a registered broker-dealer. Additionally, 1 Global did not register its securities offering with the Commission, and there was no applicable exemption from registration for this offering”.

The SEC further alleged that, “1 Global recruited a network of dozens of external, mostly unregistered, sales agents, including Ortiz. Ortiz was associated with a company that called itself an alternative investment wholesaler and learned about 1 Global from the wholesaler. Ortiz’s agreement with the wholesaler provided that Ortiz would receive a commission of approximately 2.5 percent on all direct sales he made. Using this information, Ortiz told investors 1 Global could earn high single digit to low double digit returns a year. In at least one instance, Ortiz emailed a prospective investor stating that 1 Global averaged a 15 percent annual return – a figure even higher than those promoted by 1 Global”.

There are two claims for relief laid down by the SEC, the first claim is for the violations of Sections 5(a) and 5(c) of the Securities Act, where the defendant allegedly directly or indirectly made use of any means or instruments of transportation or communication in interstate commerce or of the mails to sell securities, through the use or medium of a prospectus or otherwise. The second claim is for violations of Section 15(a)(1) of the Exchange Act by the use of the mails or any means or instrumentality of interstate commerce affected transactions in, or induced or attempted to induce the purchase or sale of securities, while he was not registered with the SEC as a broker or dealer or not associated with an entity registered with the SEC as a broker-dealer.

In its prayer for relief the SEC has requested the court to issue a permanent injunction enjoining Ortiz from violating Sections 5(a) and 5(c) of the Securities Act and Section 15(a)(1) of the Exchange Act, an order directing Ortiz to disgorge all ill-gotten gains or proceeds received as a result of the acts and/or courses of conduct complained of herein, with prejudgment interest, and an order directing Ortiz to pay a civil money penalty pursuant to Section 20(d) of the Securities Act and Section 21(d) of the Exchange Act.

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    0:21-CV-60590

  • Filing Date:

    03/17/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Finance - Security/Commodity/Exchange

  • Court:

    U.S. District Courts

  • Courthouse:

    Florida Southern District

Judge Details

Presiding Judge

Roy K. Altman

Referral Judge

Patrick M. Hunt

 

Party Details

Plaintiff

Securities and Exchange Commission

Defendant

David P. Ortiz

Attorney/Law Firm Details

Plaintiff Attorneys

Robert Kent Levenson

Attorney at Securities & Exchange Commission

801 Brickell Avenue, Suite 1800

Miami, FL 33131

Alice Sum

Attorney at U.S. Securities and Exchange Commission

801 Brickell Avenue, Ste 1950

Miami, FL 33131

 

Court Documents

#15

(#15) NOTICE by Securities and Exchange Commission re #14 Order Requiring Joint Scheduling Report, Joint Notice of No Agreement To Expedited Bench Trial (Levenson, Robert) (Entered: 04/29/2021)

#14

(#14) ORDER The parties shall attend a meet and confer by April 30, 2021. By April 30, 2021, the parties shall file a joint notice whether they have agreed to an expedited bench trial and, if so, whether they have agreed to a schedule. If the parties do not agree to an expedited bench trial, they shall prepare and file a joint scheduling report, as required by Local Rule 16.1, by May 14, 2021. Signed by Judge Roy K. Altman on 4/27/2021. See attached document for full details. (jbs) (Entered: 04/27/2021)

#10

(#10) MOTION for Extension of Time to file Joint Scheduling Report re #6 Order Requiring Joint Scheduling Report by Securities and Exchange Commission. Responses due by 4/28/2021 (Sum, Alice) (Entered: 04/14/2021)

#7

(#7) NOTICE of Attorney Appearance by Alice Sum on behalf of Securities and Exchange Commission. Attorney Alice Sum added to party Securities and Exchange Commission(pty:pla). (Sum, Alice) (Entered: 03/31/2021)

#6

(#6) ORDER REQUIRING SCHEDULING REPORT AND CERTIFICATES OF INTERESTED PARTIES Joint Scheduling Report due by 4/22/2021. Signed by Judge Roy K. Altman on 3/26/2021. See attached document for full details. (jbs) (Entered: 03/26/2021)

#4

(#4) WAIVER OF SERVICE Returned Executed by Securities and Exchange Commission. David P. Ortiz waiver sent on 3/18/2021, answer due 5/17/2021. (Levenson, Robert) (Entered: 03/25/2021)

#3

(#3) Summons Issued as to David P. Ortiz. (jbs) (Entered: 03/17/2021)

 

Docket Entries

  • 05/13/2021
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  • Docket(#16) Unopposed MOTION to Stay the Case for 90 Days (including the May 14, 2021 deadline to file a Joint Scheduling Report and Certificates of Interested Parties) to Allow SEC Commissioners to Consider Proposed Settlement and Notice of Proposed Settlement with Defendant David Ortiz by Securities and Exchange Commission. Responses due by 5/27/2021 (Attachments: #1 Text of Proposed Order)(Levenson, Robert) (Entered: 05/13/2021)

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  • 04/29/2021
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  • Docket(#15) NOTICE by Securities and Exchange Commission re #14 Order Requiring Joint Scheduling Report, Joint Notice of No Agreement To Expedited Bench Trial (Levenson, Robert) (Entered: 04/29/2021)

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  • 04/27/2021
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  • Docket(#14) ORDER The parties shall attend a meet and confer by April 30, 2021. By April 30, 2021, the parties shall file a joint notice whether they have agreed to an expedited bench trial and, if so, whether they have agreed to a schedule. If the parties do not agree to an expedited bench trial, they shall prepare and file a joint scheduling report, as required by Local Rule 16.1, by May 14, 2021. Signed by Judge Roy K. Altman on 4/27/2021. See attached document for full details. (jbs) (Entered: 04/27/2021)

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  • 04/26/2021
  • Docket(#13) PAPERLESS Minute Entry for proceedings held before Judge Roy K. Altman: Miscellaneous Hearing held on 4/26/2021. Total time in court: 0 hour(s) : 20 minutes. Attorney Appearance(s): Alice Sum, Robert Kent Levenson, Mark Anchor Albert. Court Reporter: Francine Salopek, 954-769-5686 / Francine_Salopek@flsd.uscourts.gov. (mpt) (Entered: 04/26/2021)

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  • 04/15/2021
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  • Docket(#12) PAPERLESS ORDER granting in part #10 the Motion to Extend Deadline to Submit Joint Scheduling Report, Certificates of Interested Parties, and Corporate Disclosure Statements. The deadline is CONTINUED pending the status conference on April 26, 2021 at 10:00am. The Plaintiff shall SERVE (via email) this order on counsel for the Defendant by April 16, 2021. Defendant's counsel - Mark Anchor Albert - may appear without a PHV motion for purposes of this status conference. Signed by Judge Roy K. Altman on 4/15/2021. (mpt) (Entered: 04/15/2021)

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  • 04/15/2021
  • Docket(#11) PAPERLESS NOTICE of Hearing: Status Conference set for 4/26/2021 10:00 AM before Judge Roy K. Altman. Hearing will be held via Zoom videoconference. Meeting ID: 161 2752 2255. Password: 7777. (mpt) (Entered: 04/15/2021)

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  • 04/14/2021
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  • Docket(#10) MOTION for Extension of Time to file Joint Scheduling Report re #6 Order Requiring Joint Scheduling Report by Securities and Exchange Commission. Responses due by 4/28/2021 (Sum, Alice) (Entered: 04/14/2021)

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  • 04/05/2021
  • Docket(#9) PAPERLESS Minute Entry for proceedings held before Judge Roy K. Altman: Miscellaneous Hearing held on 4/5/2021. Total time in court: 0 hour(s) : 2 minutes. Attorney Appearance(s): Alice Sum, Robert Kent Levenson, Court Reporter: Francine Salopek, 954-769-5686 / Francine_Salopek@flsd.uscourts.gov. (mpt) (Entered: 04/05/2021)

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  • 04/01/2021
  • Docket(#8) PAPERLESS NOTICE of Hearing: The Status Conference for 4/1/2021 at 1:00pm before Judge Roy K. Altman has been moved to 4/5/2021 at 03:30 PM. The hearing will be held via Zoom videoconference. Meeting ID: 161 2752 2255 Password: 7777. (mpt) (Entered: 04/01/2021)

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  • 03/31/2021
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  • Docket(#7) NOTICE of Attorney Appearance by Alice Sum on behalf of Securities and Exchange Commission. Attorney Alice Sum added to party Securities and Exchange Commission(pty:pla). (Sum, Alice) (Entered: 03/31/2021)

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  • 03/26/2021
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  • Docket(#6) ORDER REQUIRING SCHEDULING REPORT AND CERTIFICATES OF INTERESTED PARTIES Joint Scheduling Report due by 4/22/2021. Signed by Judge Roy K. Altman on 3/26/2021. See attached document for full details. (jbs) (Entered: 03/26/2021)

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  • 03/26/2021
  • Docket(#5) PAPERLESS NOTICE of Hearing: Status Conference set for 4/1/2021 01:00 PM in Fort Lauderdale Division before Judge Roy K. Altman. The hearing will be held via Zoom videoconference. Meeting ID: 161 2752 2255 Password: 7777. (mpt) (Entered: 03/26/2021)

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  • 03/25/2021
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  • Docket(#4) WAIVER OF SERVICE Returned Executed by Securities and Exchange Commission. David P. Ortiz waiver sent on 3/18/2021, answer due 5/17/2021. (Levenson, Robert) (Entered: 03/25/2021)

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  • 03/17/2021
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  • Docket(#3) Summons Issued as to David P. Ortiz. (jbs) (Entered: 03/17/2021)

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  • 03/17/2021
  • Docket(#2) Clerks Notice of Judge Assignment to Judge Roy K. Altman and Magistrate Judge Patrick M. Hunt. Pursuant to 28 USC 636(c), the parties are hereby notified that the U.S. Magistrate Judge Patrick M. Hunt is available to handle any or all proceedings in this case. If agreed, parties should complete and file the Consent form found on our website. It is not necessary to file a document indicating lack of consent. Pro se (NON-PRISONER) litigants may receive Notices of Electronic Filings (NEFS) via email after filing a Consent by Pro Se Litigant (NON-PRISONER) to Receive Notices of Electronic Filing. The consent form is available under the forms section of our website. (jbs) (Entered: 03/17/2021)

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  • 03/17/2021
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  • Docket(#1) COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF against David P. Ortiz. Filing fees $ 402.00. USA Filer - No Filing Fee Required, filed by Securities and Exchange Commission. (Attachments: #1 Civil Cover Sheet, #2 Summon(s))(Levenson, Robert) (Entered: 03/17/2021)

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