Leo Financial Advisor Unsuitably Recommended GPB Private Placements

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.

Luley, who is a Pruco Securities stockbroker, is also a managing partner of Leo Financial Group, formerly called RLL Financial Services, LLC. His firm’s services include income planning for retirees. Through Pruco Securities, marketed as Prudential Planning Financial Services, Luley offers investment advisory services.

Shepherd Smith Edwards and Kantas (SSEK Law Firm) is speaking to customers of Robert Luley who have suffered significant investment losses in GPB Automotive or other investments. Contact our broker fraud attorneys today.

Luley is Accused of Unsuitably Recommending Alternative Investments

According to Robert Luley’s BrokerCheck record, during his 18 years in the industry, he also worked at Allstate Financial Services, Allstate Financial Advisors, NFP Securities, Securities America, Park Avenue Securities, PFS Investments, and other firms. Other sources online report that Luley used to be a Madison Avenue Securities broker as well.

All of the five customer complaints noted on his record are alternative investment fraud cases that were brought this year, including:

10/2020: A GPB private placement case alleging unsuitability. The claimant is seeking $100K in damages.
8/2020: A GPB Automotive claim. The investor is requesting $75K.
7/2020: Another unsuitable recommendation case involving GPB investments. The customer is requesting $70K in damages.
6/2020: In this Financial Industry Regulatory Authority (FINRA) case, the claimant is seeking $250K and alleging unsuitability, overconcentration, and misrepresentations and omissions involving alternative investments.
4/2020: This alternative investment fraud case brings similar allegations to the one from June 2020.

GPB Ponzi Scam

GPB Capital Holdings, which invests in auto dealers and waste management, has been under scrutiny over allegations that it operated a complex Ponzi scam that enriched company executives and others. It remains under investigation by the US Securities and Exchange Commission (SEC), FINRA, the Federal Bureau of Investigation (FBI), and other regulators.

GPB is the defendant in a number of class action securities fraud cases. Meanwhile, investors with GPB private placements have no idea what their investments are worth – that is if they are worth anything at all.

Already, SSEK Law Firm has filed FINRA arbitration claims against a number of broker-dealers and their registered representatives that sold GPB investments to customers. It is unfortunate that there are brokerage firms that failed to conduct the proper due diligence before they recommended GPB.

Failure to Supervise

Brokers have a duty to only market and sell investments when they are suitable for a customer’s portfolio, investment goals, and risk tolerance level. They also have an obligation to properly research any securities that they recommend to ensure that they are legitimate.

Broker-dealers are supposed to supervise their registered representatives and any transactions that they conduct for customers. Financial firms can be held liable if their failure to supervise leads to investment losses.

To explore your legal options, get in touch with our GPB private placement attorneys today and ask for your free, no-obligation case consultation. Contact us by using our online form or by calling (800) 259-9010.