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Articles Posted in GPB Capital

Scottsdale, Arizona Investment Advisor Was Fired By Broker-Dealer Coastal Securities

Luke Michael Johnson, currently Managing Director for Prime Capital Investment Advisors in Paradise Valley in the Scottsdale area, is named in over a dozen pending disputes by investors seeking damages for losses they allegedly suffered while working with him. Johnson was also the president of Legend Capital Group and a former Capital Securities broker where he worked for seven years. 

There are 19 disclosures on his BrokerCheck record. The majority of these are investor claims, with a number of them requesting damages that are in the six- or seven-figures.

Ex-Concorde Investment Services Broker Allegedly Made Negligent Recommendations 

Robert Scott Smith, the President of Peregrine Private Capital in Newberg, Oregon, and a former Concorde Investment Services, is named in multiple Financial Industry Regulatory Authority (FINRA) arbitration claims by former customers that invested in GPB private placement funds at his recommendation. 

GPB Capital Holdings is accused of running a $1.8B Ponzi scam. Smith is one of a number of Concorde Investment Services brokers who sold this alternative asset firm’s private placements to customers. 

Charlotte, NC Advisor Is Named in GPB Private Placement Claims 

Robert Leo Luley, a financial advisor based in Charlotte, North Carolina, reportedly marketed and sold investments in GPB Automotive Portfolio from GPB Capital Holdings. The alternative asset firm is accused of running a $1.8B Ponzi scam that allowed brokers and investment advisors to earn over $165M in commissions. 

There are several GPB funds, and all of them have lost money. GPB Automotive Portfolio is GPB Capital Holdings’ second-largest fund. 

Three Pending FINRA Arbitration Claims Accuse Triad Advisors Broker of Unsuitability

Lee Duckworth, the CEO of investment advisory firm Capital Wealth Management and a Triad Advisors stockbroker, was recently named in three Financial Industry Regulatory Authority (FINRA) arbitration claims accusing him of making unsuitable investment recommendations to customers. 

At least one of the disputes involves private placements from GPB Capital Holdings, an alternative asset firm accused of running a more than $1.5B Ponzi scam. Duckworth is a West Warwick, Rhode Island broker and investment advisor.

Boca Raton Stockbroker Recently Named in Two FINRA Arbitration Complaints

Willard Louis Pugh, a National Asset Management financial adviser in Florida, is currently under scrutiny in the wake of customer allegations alleging unsuitable investment recommendations. Pugh, who has been in the securities industry for 32 years, is also a National Securities broker.  He was recently named in two customer disputes filed in Financial Industry Regulatory Authority (FINRA) arbitration.

The first investor claim, brought in June, seeks $300K in damages. Pugh’s BrokerCheck record doesn’t specify what type of investment is involved. The second customer case, filed in July, names the United Development Funding V real estate investment trust (UDF V REIT). The claimant is seeking $155K. 

Investor’s FINRA Arbitration Claim Seeks Damages of Up to $100K

A Florida retiree has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against the brokerage firm, National Securities Corp. 

The claimant contends that agents of National Securities Corp overconcentrated his account in real estate investment trusts (REITs), privately traded securities, and private placements. This included a large position in GPB Capital Holdings, which is accused of operating an over $1.5B Ponzi scam.

Michael Cohn Allegedly Stole Information About SEC Probe Into GPB Ponzi Scam Allegations

Nearly a year after he was charged with obstruction of justice, Michael Cohn, the former Chief Compliance Officer of GPB Capital Holdings, has pleaded guilty to the misdemeanor crime of theft of government property. 

The initial charges against him had been classified as federal crimes and included obstruction of justice, unauthorized disclosure of confidential information, and unauthorized computer access.

Joseph Michaletz Named in Multiple Customer Disputes Since December 2019

Joseph Gerard Michaletz, a Dai Securities broker, is the subject of seven customer complaints that were filed over the last eight months. The allegations against him claim that he sold GPB private placements to customers for whom they were unsuitable. This happened while he was a registered representative for Concorde Investment Services and before that with Triad Advisors.  

GPB Capital Holdings LLC  is accused of operating a $1.8B Ponzi scam. Many brokers and their firms did not perform the proper due diligence to make sure that the GPB Funds were legitimate investments that were safe and suitable for customers. 

Delayed Filing with the SEC Shows 45.2% Drop in AUM Over 18 Months 

Last month, GPB Capital Holdings finally filed its Form ADV with the US Securities Exchange Commission (SEC) after requesting an extension from the regulator in 2019.  

In the form, the alternative asset firm, which is already under siege in the wake of numerous federal and state regulator investigations, an FBI probe, and lawsuits accusing it of operating a massive Ponzi scam, reported a $196.3M decline in assets under management (AUM) over 18 months from the end of 2017 to the end of June 2019. That’s a 45.2% drop from $434.3M in AUM to $238.6M. 

Alternative Asset Firm Gets Federal Aid While Its Investors Fight To Recover Their Losses

Even as the US Securities Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the FBI, state regulators and others have continued to investigate GPB Capital Holdings over allegations that it ran an up to $1.8B Ponzi scam, the alternative asset firm and its affiliated companies were able to secure between $3M and $7M in Paycheck Protection Program (PPP) loans following the outbreak of COVID-19. 

News of the loans was disclosed by the Small Business Administration.  GPB is one of over 660,000 small businesses that received loans under the PPP program, which is part of the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act.

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