MIAMI (AP) — A Florida executive with ties to the former owners of Playgirl magazine has pleaded guilty to conspiracy to commit securities fraud. Carl R. Ruderman, the former chairman and CEO of 1 Global Capital LLC, admitted to misleading investors in his high-interest loan company that catered to small businesses.

Ruderman’s company filed for bankruptcy in July 2018, and federal authorities discovered his involvement in a $250 million scheme that affected over 3,400 investors across 42 states. The 82-year-old executive entered his guilty plea in federal court in Miami.

According to court records, Ruderman is scheduled to be sentenced on January 3 and faces a maximum prison term of five years. Additionally, he may be required to forfeit more than $250 million.

In his plea, Ruderman confessed to using investors’ funds for personal expenses such as credit card payments, vacations, drivers, nannies, housekeepers, tuition, mortgage payments, luxury car payments, insurance for his art collection, and jewelry. The Justice Department revealed these details in a news release.

Ruderman also admitted diverting investors’ money to benefit himself and his family without their knowledge. His lending company provided merchant cash advance loans to small businesses, similar to payday loans.

The Justice Department uncovered false representations made by Ruderman and others to investors regarding the profitability of 1 Global. Investors were deceived with claims that the company had undergone audits by a reputable accounting firm, that their money would be used for merchant cash advance loans, and that they could expect substantial returns on their investments.

The Securities and Exchange Commission (SEC) had previously filed a complaint against Ruderman and 1 Global in 2018. The complaint revealed that the company had collected funds from investors, including retirement savings, between February 2014 and July 2018.

The SEC also disclosed that 1 Global was owned by the Ruderman Family Trust, the same trust that owned Digi South, a company associated with adult magazines, including Playgirl. Four other individuals involved in the 1 Global fraud had already pleaded guilty, according to the Justice Department.

Alan G. Heide, the former CFO of 1 Global, was sentenced to five years in prison and ordered to pay over $57 million in restitution. Andrew Dale Ledbetter, a lawyer, received the same sentence and was ordered to pay more than $148 million in restitution. Steven Allen Schwartz, a director and consultant at 1 Global, was sentenced to two years in prison and ordered to pay over $36 million in restitution. Jan Douglas Atlas, another lawyer, was sentenced to eight months in prison and ordered to pay more than $29 million in restitution.

The fraud scheme perpetrated by Ruderman and his associates caused significant harm to investors who believed their money was being responsibly and legitimately managed. It serves as a warning to potential investors to exercise caution and thoroughly research any investment opportunity before committing their funds.

The sentencing of Ruderman in January will mark the final chapter in this fraudulent enterprise that defrauded thousands of investors.