Scores of people in the Kansas City area and thousands more nationwide are feeling the financial sting of a $283 million bankruptcy in Florida.
They all invested in “memorandums of indebtedness” from 1 Global Capital in Hallandale Beach, Florida. The company, which uses the name 1st Global Capital, is now bankrupt.
Bankruptcy records show more than 4,000 1st Global Capital accounts across the country, sold by numerous advisers.
Investors in the Kansas City area were offered the deals by Matthew Walker or others working for Walker’s Pinnacle Plus companies, based in Overland Park, Kansas.
1st Global Capital says the bankruptcy was caused by a pair of federal investigations.
The company formed five years ago to finance small businesses, funding them with proceeds from memorandums of indebtedness sold by firms like Pinnacle Plus.
But 1st Global Capital came under investigation for “alleged possible securities law violations,” according to a court filing, and investment dried up. The company faced a liquidity crisis and, ultimately, bankruptcy.
Read more: Kansas City Star