Advisor Group Broker-Dealers Facing $19.4M in GPB Capital Holdings Investor Claims

In Focus Reports submitted to the US Securities and Exchange Commission (SEC) in February 2022, four brokerage firms from the Advisor Group network disclosed that they were respondents in 58 Financial Industry Regulatory Authority (FINRA) arbitration cases. These arbitration cases, from July 2019 through the end of 2021, were over GPB-related losses.

GPB Capital Holdings, LLC, which issued these private placements, is accused of operating an over $1.8B Ponzi scam that defrauded more than 17,000 thousand investors. GPB investors typically purchased these high-commission products in $50K to $100K tranches. They have since suffered substantial investment losses. 

Distributions of GPB private placements were stopped in 2018. Ponzi fraud allegations, resulting investigations, and litigation followed. The GPB funds plunged in value. Meanwhile, dozens of brokerage firms marketed and sold these alternative investments to customers, earning many millions of dollars in commissions and fees.

Our GPB private placement attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at represents a number of these investors in their FINRA arbitration claims against these Advisor Group brokerage firms. 

If you too would like to explore your legal options over your GPB private placement losses, contact Shepherd Smith Edwards and Kantas (SSEK Law Firm at today.

GPB Capital Investors Allege Negligence, Unsuitability, and Failure to Supervise

In their investor disputes pursuing damages against the four Advisor Group broker-dealers, the claimants are accusing these firms of negligence in allowing their registered representatives to solicit GPB products to customers. 

They also allege breach of contract, breach of fiduciary duty, unsuitability, and failure to supervise brokers. To begin with, many of these investors were retail customers, including retirees and seniors, who should never have been involved in risky alternative investments.  

Here is the breakdown of GPB customer disputes involving Advisor Group firms: 

  • Triad Advisors: 22 arbitration cases involving $4.4M in customer monies. 
  • FSC Securities: 10 arbitration claims over $6M in investor losses. 
  • SagePoint Financial: 13 customer disputes over $4.3M
  • Royal Alliance Associates: 13 investor claims for $4.7M. 

Advisor Group has $475B in client assets and 10,100 financial advisors. The Focus Reports that its brokerage firms submitted to the SEC are their yearly audited financial statements.

GPB Capital Holdings is Now Overseen By Monitor

In 2021, the court appointed Joseph Gardamel, managing director of Alvarez & Marsal Holdings LLC., to monitor GPB Capital Holdings. Meanwhile, the alternative asset firm’s CEO David Gentile and two other former executives, Jeffrey Lash and Jeffry Schneider, face SEC fraud charges and criminal charges.

GPB Capital Holdings Funds Under Investigation by SSEK Law Firm 

  • GPB Holdings LP
  • GPB Holdings II, LP
  • GPB Holdings III, LP
  • GPB Automotive Portfolio, LP
  • GPB Cold Storage
  • GPB Waste Management, LP 

If you believe that you suffered losses in GPB private placements after they were recommended to you by a broker, seek legal help today. Our securities fraud lawyers have many decades of experience in recovering financial losses.

To schedule your free, no-obligation case consultation with one of our seasoned GPB private placement attorneys, call SSEK Law Firm at (800) 259-9010 today.

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