Investor Pursues $500K GPB Capital Claim Against TD Ameritrade

GPB Private Placements Were Sold Through Brokerage Firm’s AdvisorDirect® Service

An investor recently filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against broker-dealer TD Ameritrade over losses sustained in GPB investments. The private placements from GPB Capital Holdings were recommended by an investment advisor via the TD Ameritrade AdvisorDirect® Referral Program. 

GPB Capital Holdings LLC is accused of operating an over $1.7B Ponzi scam that defrauded over 17,000 investors. The claimant is seeking $500K in damages. 

Our private placement lawyers are looking into other claims of losses by TD Ameritrade customers who may have been unsuitably sold these alternative assets. Dozens of brokerage firms earned massive commissions collectively totaling over $160M even as investors continue to grapple with how to recover their losses. TD Ameritrade was acquired by Charles Schwab Corporation in October 2020. 

Your best bet for financial recovery from the GPB Ponzi scam is to pursue your own FINRA arbitration claim against your financial advisor and broker-dealer. Contact us at Shepherd Smith Edwards and Kantas (SSEK Law Firm at today so that we can help you explore your legal options.

TD Ameritrade Should Have Properly Supervised RIA 

TD Ameritrade’s referral program offers customers an introduction to an independent registered investment advisor. It was through this program that the TD Ameritrade customer worked with an investment advisor to purchase private placements from GPB Funds. 

Considering that it was TD Ameritrade’s referral program, the brokerage firm should have properly supervised account activities involving this customer. Also, the firm should have conducted adequate due diligence when choosing which investment advisors to be affiliated with in this way. 

Unfortunately, many brokerage firms and investment advisors appear to have disregarded the red flags indicating that GPB Capital may have been a mass Ponzi scheme. Or, did not perform the required due diligence to make sure these were legitimate, safe investments.

Some may have been lured in by the high commissions. This is why thousands of retail investors and retirees were among those who were unsuitably sold GPB private placements.

Investigations and Lawsuits Involving GPB Continue 

Earlier in 2021, the Securities and Exchange Commission (SEC) filed a civil lawsuit against GPB Capital Holdings and certain key executives. These executives were named in a parallel criminal case and are under scrutiny for possibly using investor funds to pay for their personal expenses. Numerous states also sued GPB, and there are several class action complaints in which the alternative asset firm is the defendant.

In November 2021, GPB Capital Holdings finalized its $880M sale of Prime Automotive Group months after disclosing liquidation issues. The company also settled a lawsuit filed by former prime CEO David Rosenberg for $30M. Rosenberg is one of many who also have accused GPB of running a mass investment scheme.

Knowledgeable GPB Private Placement Attorneys

Pursuing your own FINRA arbitration claim will increase your chances of maximizing your recovery from any GPB investment losses. Call us at (800) 259-9010 today to speak with an SSEK Law Firm attorney and receive a free case consultation.

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