SEC Bars Advisor Over 1 Global Capital Sales

Posted on April 6th, 2022 at 2:20 PM
SEC Bars Advisor Over 1 Global Capital Sales

From the Desk of Jim Eccleston at Eccleston Law:

The Securities and Exchange Commission (SEC) has barred an advisor as well as his firm, which sold $37 million of an investment fraud, 1 Global Capital, between May 2017 and June 2018.

The SEC barred Michael Pellegrino and his firm, 1 Global Capital, which is a Chicago-based advisory firm that oversees $298.5 million in assets. Michael Pellegrino and Anthony Pellegrino, the firm’s principal and owner, generated nearly $1.6 million in fees from 1 Global for selling the securities. Michael Pellegrino, Anthony Pellegrino and the firm settled the dispute with the SEC without admitting or denying any of the regulator’s investigatory findings. However, the SEC ordered Global Capital to pay a $70,000 penalty and hire an independent compliance consultant. In 2018, the SEC initiated its investigation of 1 Global Capital, which purportedly provided small business loans known as direct merchant cash advances.

1 Global Capital advertised its investment as safe while falsely informing investors that the firm’s merchant cash advance business would attain high-single-digit or low-double-digit annual returns, according to the SEC. However, unbeknownst to the Pellegrinos and their firm, 1 Global’s operation was determined to be a fraud, according to the SEC. Once 1 Global filed for bankruptcy, Global Capital set aside funds to facilitate a settlement with its clients who invested in 1 Global. According to the SEC, Global Capital agreed to return all referral fees received from 1 Global plus an additional sum of nearly $700,000, which included $1.3 million personally contributed by Anthony Pellegrino.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.


Tags: eccleston law, sec, advisory firm

Return to Archive



Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.


June 23, 2022
Former Credit Suisse Advisor Prevails in Deferred Compensation Claim

A former Credit Suisse advisor has prevailed on a $2.2 million arbitration claim after alleging that the firm improperly withheld his deferred compensation when it discontinued its U.S. brokerage business in 2015. 

June 23, 2022
Eccleston Law LLC Investigates Recovery Options for NRIA Investors

Headquartered in Secaucus, NJ, National Realty Investment Advisors (NRIA) recently declared bankruptcy amid investor redemption requests, federal and state investigations, and unsustainable debt.

June 22, 2022
SEC Charges Three Additional Advisors for Recommending Horizon Ponzi Scheme to Investors

The Securities and Exchange Commission (SEC) has filed suit against Michael Mooney, Britt Wright, and Penny Flippen pertaining to their engagement with a Ponzi scheme, which raised at least $110 million from nearly 400 investors.