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First Broker Fraud Case Involving GPB Capital Investments Gears Up for Spring FINRA Hearing

GPB Capital Fraud Victim To Have Case Heard By FINRA 

An investor who lost significant sums after she was sold GPB Capital private placements by an Arkadios Capital broker will get her case heard before a Financial Industry Regulatory Authority arbitration (FINRA) panel in April 2020. 

This will likely be the first broker fraud complaint involving GPB investments to go before the self-regulatory organization’s (SRO’s) arbitrators. 

Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) is representing this claimant in her case against Arkadios. We expect the other GPB investor fraud cases that we’ve filed on behalf of our other clients to go before FINRA later in the Spring and Summer of 2020. 

Accusations Against GPB Capital Holdings 

GPB Capital Holdings, an alternative asset firm, is accused of operating a $1.8B Ponzi scam that defrauded thousands of investors. Its private placements were sold by over 60 broker-dealers and their brokers to customers, who have since sustained massive losses in the wake of all of the GPB funds dropping in value, the suspension of investor redemptions, and no audited financial statements apprising buyers of the value of their investments. Already, at least two auditing teams have stepped down before providing these statements.  

GPB Investor Loses Her Retirement Money 

In this first GPB investor fraud case to go before a FINRA arbitration panel, the claimant, our client, is an Atlanta Georgia resident who lost hundreds of thousands of dollars, including from her IRA. This was after an Arkadios Capital broker encouraged her to invest in GPB investments, including the GPB Holdings II, LP fund. 

This was part of what caused her portfolio to become heavily concentrated in private placements. Our client now sees that the GPB funds were unsuitable investments for her to begin with. She says that the Arkadios broker never fully apprised her of the risks involved or made sure she understood what these risks were. 

There are also other legal and civil troubles plaguing GPB. This includes ongoing investigations by the US Securities and Exchange Commission (SEC), FINRA, and a criminal probe by the Federal Bureau of Investigation.

Other GPB Capital News  

Even two of GPB’s former business partners have filed their own lawsuits, accusing the alternative asset firm of operating a massive Ponzi scam. 

In October, Michael Cohn, GPB’s now-fired CCO and a former SEC examiner, was charged by prosecutors with obstruction. Last month, a new class-action securities case accused GPB executives and others of conspiring together to operate a complex fraud. 

All the while, brokerage firm and their registered representatives have earned more than $160M in commissions from selling GPB investments. Considering what has come to light, the lure of making money may have taken greater precedence over the best interests of clients. 

GPB Investor Fraud Attorneys

The claimant is not our only client to accuse broker-dealers and their brokers of making unsuitable recommendations by persuading them to buy GPB private placements. 

Already, SSEK Law Firm has filed fraud cases against Kalos Capital, Kalos Financial, Money Concepts Captial, Ameriprise Financial (AMP) and their brokers that sold these investments. 

Our GPB investment fraud lawyers are speaking with investors throughout the US to help them explore their legal options and determine whether they have grounds for filing a brokerage firm misconduct claim. Contact SSEK Law Firm today. 

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