The former owner of Playgirl magazine has pleaded guilty to a $250 million fraud scheme that saw him use investor money to fund his luxurious lifestyle in Florida.

Carl R. Ruderman, 82, admitted conspiracy to commit securities fraud on Thursday in Miami and agreed to the maximum sentence of five years, as well as a forfeiture money judgment of over $250 million.

Prosecutors say he was part of a scam that affected more than 3,400 investors in 42 states and admitted to using the funds to pay for his credit card, mortgage, vacations  and other expenses like his Mercedes-Benz payments and nannies for his kids.

Once called the ‘Invisible man’ of the porn industry by Screw publisher Al Goldstein, Ruderman’s family business used to own Playgirl magazine, which shut down in 2015.

He was chairman and chief executive officer of 1 Global Capital LLC, a commercial lending company that filed for bankruptcy in July 2018 that made ‘pay day’ loans to small businesses at high interest rates.

Carl R. Ruderman, 82, pled guilty to conspiracy to commit securities fraud on Thursday 

One called the ‘Invisible man’ of the porn industry by Screw publisher Al Goldstein, Ruderman’s family business used to own Playgirl

Authorities say Ruderman lied to investors in marketing materials and periodic account statements and claimed they could expect double-digit returns on their investments.

Four of Ruderman’s co-conspirators have already pleaded guilty for their role in this fraud, including two lawyers who provided him with false legal cover to skirt federal securities laws. 

Ruderman also admitted spending 1 Global investors’ money on housekeepers, tuition, drivers, insurance payments for his art collection and jewelry, the Justice Department said in a news release Friday.

He also admitted diverting investors’ money to businesses benefitting him and his family, without investors’ knowledge, the department said.

The company — based in Hallandale Beach, Florida — made loans to small businesses, called merchant cash advance loans. Prosecutors compared those to payday loans.

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The Justice Department said Ruderman admitted he and others made false representations to investors and potential investors about the profitability of 1 Global. 

Investors were falsely told the company had been audited by a public accounting firm, that investors’ money would be spent on the merchant cash advance loans, and that people could expect big returns.

Playgirl shut down in 2015 before reopening two years later under different owners

The Securities and Exchange Commission said in a 2018 complaint against Ruderman and 1 Global that the company collected money from investors, many of whom used retirement savings, from February 2014 to July 2018.

The SEC said 1 Global was formed in 2013 and owned by the Ruderman Family Trust, which also owned other businesses, including Digi South, former owner of  Playgirl and other adult magazines.

Digi South used the same address as 1 Global and ‘received approximately $805,000 in investor funds from 1 Global for no consideration or legitimate services,’ the SEC said.

Four of Ruderman’s co-conspirators previously pleaded guilty for their roles in the 1 Global fraud, the Justice Department said.

Alan G. Heide, 65, of Lake Worth, Florida, the former 1 Global chief financial officer, pleaded guilty in 2019 to one count of conspiracy to commit securities fraud. He was sentenced to five years in prison and ordered to pay more than $57 million in restitution.

Andrew Dale Ledbetter, 81, a lawyer from Fort Lauderdale, Florida, pleaded guilty in 2021 to conspiracy to commit wire fraud and securities fraud. He was sentenced to five years in prison and ordered to pay more than $148 million in restitution.

Steven Allen Schwartz, 78, of Delray Beach, Florida, a director and consultant at 1 Global, pleaded guilty in 2020 to conspiracy to commit wire fraud and securities fraud. He was sentenced to two years in prison and ordered to pay more than $36 million in restitution.

Jan Douglas Atlas, 78, of Fort Lauderdale, Florida, a lawyer, pleaded guilty in 2019 to conspiracy to commit wire fraud and securities fraud. He was sentenced to eight months in prison and ordered to pay more than $29 million in restitution.