Jan Douglas Atlas Jan Douglas Atlas. Photo: Melanie Bell

Longtime Fort Lauderdale attorney Jan Douglas Atlas was charged with one count of securities fraud Tuesday over his alleged involvement in a $330 million scheme that prosecutors say hurt almost 3,600 investors across 42 states.

Prosecutors say Atlas provided "false legal cover" for unlawful practices when he served as outside counsel to 1 Global Capital LLC, a defunct Hallandale Beach commercial lending agency which gave high-interest payday loans to small businesses.

His corporate client, 1 Global Capital, opened in 2014 and filed for bankruptcy protection in 2018.

Prosecutors claim Atlas wrote two opinion letters for 1 Global in 2016, falsely describing how its investments worked, and included misleading statements that omitted pertinent information. The company paid Atlas $627,000 for those letters and his work, which helped 1 Global Capital illegally raise money, according to a release  from U.S. Attorney Ariana Fajardo Orshan in the Southern District of Florida.

Assistant U.S. Attorneys Jerrob Duffy and Lisa H. Miller are prosecuting the case, while Assistant U.S. Attorney Nicole Grosnoff is supervising asset forfeiture.

Atlas, 74, was admitted to the Florida Bar in 1977 and rose to prominence through his work at Kopelowitz Ostrow and other South Florida law firms.

His defense counsel, Margot Moss and David Oscar Markus of Markus/Moss in Miami, stressed that Atlas has accepted responsibility.

"Jan is a good man who had a wonderful, successful career," Moss said. "But like all of us, he wasn't perfect. He has quickly accepted responsibility for his actions in this case and shown genuine remorse. He will do everything he can to make this right."

Kopelowitz Ostrow's managing partner Jeff Ostrow said he fired Atlas after finding about his alleged crime, which was unconnected to the firm.

"It is unfortunate that such a long-standing and respected member of this legal community has found himself in this position. To be clear, at no time did anyone at the firm have knowledge of Mr. Atlas' criminal activity, all of which took place outside of and was concealed from the firm," Ostrow said. "We have been and will continue to be fully cooperative with the government in their ongoing investigation into this matter."

U.S. District Judge Beth Bloom will preside over the case.

The U.S. Securities and Exchange Commission has filed fraud charges against Atlas and initiated civil actions in related cases.

Meanwhile, 1 Global's former Chief Financial Officer Alan Heide pleaded guilty to one count of conspiracy to commit securities fraud in August and acknowledged using lawyers to perpetuate the fraud. His sentencing is scheduled for Dec. 12.

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