SEC Permanently Bars Scott Merkelson

Scott Merkelson (CRD #: 3148803) has been barred by the SEC, according to his BrokerCheck record, accessed on June 11, 2022. Keep reading to learn the SEC allegations that led to his bar. 

SEC Bar

On April 25, 2022, the SEC permanently barred Scott Merkelson. 

Also starting on April 25, 2022, the SEC indefinitely barred Scott Merkelson from participating in any penny stock offerings.

Regulatory Action by SEC

On April 11, 2022, the Securities and Exchange Commission named Scott Merkelson in a civil action involving 1 Global Capital LLC. The SEC alleged that 1 Global Capital fraudulently raised more than $322 million from over 3,600 investors through an unregistered securities offering between February 2014 and July 27, 2018.

The SEC alleges that Scott Merkelson, as Director of Business Development from April 2017 to July 2018, participated in this fraud in the following ways:

• Signing monthly investor account statements which misrepresented the role of an account firm in auditing and verifying the information in the statements, 
• Knowingly allowing sales agents to use false account statements in communication with potential investors.
• Signing monthly account statements that inaccurately represented investors’ rates of return. 

1 Global Capital allegedly promised investors a high-return, low-risk investment through its marketing materials and sales agents, claiming to use investor money to make Merchant Cash Advances (MCAs) to small- to medium-sized businesses unable to obtain traditional financing.

The SEC alleges that 1 Global Capital actually used most of investors’ funds for other expenses, including operating expenses and “funding the luxury lifestyle” of Chairman and CEO Carl Ruderman.

The Securities Act of 1933 and Securities Exchange Act of 1934

Sections 17(a)(1)-(3) of the Securities Act of 1933 and Section 10(b)-5 of the Securities Exchange Act of 1934 prohibit the following activities in connection with the purchase or sale of securities:

• The use of any manipulative or deceptive devices or schemes to defraud customers
• Profiting by misleading customers with false information, or the omission of material facts
• Engaging in any form of fraudulent business in connection with securities

Sanctions

As a result of this regulatory action, Scott Merkelson faced an injunction prohibiting him from acting as an officer or director.

Background Information

Scott Merkelson has passed the following exams:

• Series 65 – Uniform Investment Adviser Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 3 – National Commodity Futures Examination
• Series 55 – Limited Representative-Equity Trader Exam
• Series 7 – General Securities Representative Examination
• Series 24 – General Securities Principal Examination

He has also worked for the following firms:

• TD Ameritrade (CRD#:7870)
• AXA Advisors (CRD#:6627)
• Tradestation Securities (CRD#:39473)
• Carlin Equities (CRD#:31295)
• Marquette de Bary Company (CRD#:1612)
• S.G. Martin Securities (CRD#:46908)
• Magnum Securities  of New York (CRD#:39267)
• Fin-Atlantic Securities (CRD#:25523)

Kurta Law Can Help

If you worked with Scott Merkelson and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.