Investor Lawyers Blog

Geneos Wealth Management Named in $1M GPB Investor Fraud Claim

Published on: March 30, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Brokerage-Dealer Accused of Unsuitable Investment Recommendation In Three GPB Funds

Geneos Wealth Management, a Denver, Colorado-based brokerage firm, is accused of inappropriately recommending that a customer invest in three GPB Capital funds: The GPB Holdings II LP, the GPB Automotive Portfolio, and GPB Waste Management. The investment fraud claim contends that the broker-dealer invited GPB Capital Holdings employees to give a presentation in order to get investors on board.

GPB Capital Holdings, a New York-based alternative assets firm, is now accused of operating a more than $1.8 billion Ponzi scam that enriched not just the company’s executives but also the dozens of brokerage firms and their registered representatives. These firms failed to carry out the proper due diligence when they unsuitably recommended and sold GPB private placements to customers.

Ex-Merrill Lynch Broker Marcus Boggs Pleads Guilty In $3M Investor Fraud

Published on: March 26, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Former Chicago Stockbroker Defrauded Customers To Fund Luxury Lifestyle

Marcus E. Boggs, an ex-Merrill Lynch, Pierce, Fenner & Smith registered representative, has pleaded guilty to wire fraud in the federal criminal case accusing him of defrauding former customers of $3M. The ex-Chicago financial advisor admitted to using the money to fund his lavish lifestyle. He faces up to 20 years in prison and will be sentenced in June.

Boggs spent his entire 12 years in the industry working for Merrill Lynch. Also a former registered investment advisor, he has 13 disclosures on his BrokerCheck, including bars from the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) in 2019 and 2020, respectively.

SSEK Law Firm Investigates Brokerage Firms That Sold New York City REIT to Customers

Published on: March 25, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Investors That Bought NYC Stock When it Was a Non-Traded REIT Hit Especially Hard After NYSE Listing

Our real estate investment fraud attorneys (REIT) at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are investigating the broker-dealers and investment advisors that sold New York City REIT (NYC) to customers.

Now available on the New York Stock Exchange (NYSE) and open to any investor with a brokerage account, this real estate investment trust used to be a non-traded REIT and it is the investors that purchased this non-traded real estate trust that have sustained the most significant losses after it went public in August 2020.

Ex-Ocean Financial Services Broker Maria Calcena Named In Customer’s Northstar Financial Services (Bermuda) Fraud Claim

Published on: March 24, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Former Customer of Florida Broker is Seeking $245K In Damages

Maria Florencia Calcena, currently an Infinex Investments broker in Palm Beach, Florida, is named in a $245K investor claim in which the customer invested in a product from Northstar Financial Services (Bermuda) Ltd.

The investor is alleging breach of fiduciary duty, negligence, and violation of Florida’s Investor Protection Act during Calcena’s time as an Ocean Financial Services registered representative.

Advisor Group Broker-Dealers Named in GPB Capital Fraud Claims Raised Their Legal Reserves

Published on: March 19, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Customers of Sagepoint Financial, Royal Alliance Associates, and FSC Securities Have Suffered Losses in the GPB Funds

According to InvestmentNews, three Advisor Group brokerage firms raised their reserves for expected “legal and regulatory matters” by up to three times last year. The firms disclosed this information in their 2020 Focus Reports, which are financial statements that they recently submitted with the US Securities and Exchange Commission (SEC).

Although the broker-dealers did not explain what they needed these added legal reserves for, they are among the dozens of financial firms that collectively earned over $160M in commissions from selling GPB private placements to investors.

SEC Accuses Texas-Based Investment Adviser APEG Energy of $17M Oil and Gas Fraud

Published on: March 17, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Owners Accused of Misappropriating Nearly $2.7M from Investors

The US Securities and Exchange Commission (SEC) has filed a civil fraud lawsuit accusing APEG Energy, GP, LLC (APEG) and its owners Paul W. Haarman and Patrick E. Duke of fraudulently raising over $17.4M from 115 investors of an oil and gas investment fund.

These investors purchased limited partnership securities in APEG Energy, LP, a fund concentrated in the oil and gas industry. Now, the SEC is alleging misrepresentations and omissions, breach of fiduciary duty, and a deceptive scam that allowed the Fund and its owners to take almost $2.7M from investors.

Customer Of UBS Brokers Mark Zeller and Scott Rosenberg Awarded Nearly $90K Over YES Strategy Losses

Published on: March 16, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Florida Arbitration Panel Refuses To Expunge Advisors’ Record of Options Overlay Case

In December, a Financial Industry Regulatory Authority (FINRA) arbitration panel in Boca Raton, Florida awarded a UBS Wealth management client and retiree $89,675 in his UBS Yield Enhancement Strategy (YES) claim over significant losses he sustained in the brokerage firm’s options overlay strategy.

The award was for his unsuitability claim against UBS Financial Services. He also alleged negligence, fraud, breach of fiduciary duty, negligence, omissions, failure to supervise, and breach of contract.

Why SPACs Can Be A Poor Investment Choice For Retail Investors

Published on: March 15, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Special Purpose Acquisition Companies Can Lead To Losses, High Fees

If you are an investor whose broker recommended that you invest in a special purpose acquisition company (SPAC) and you have suffered losses on your investment, you should contact our investment fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com).

SPACs grew even more popular in 2020 in the wake of COVID-19. Although they can be profitable for those who start one, they’ve also proven to be risky and can result in losses for investors. Contact SSEK Law Firm today to request your free, no-obligation consultation.

RBC Capital Markets Broker Brian Wurdemann Named in $1M Mutual Fund Case Alleging Misrepresentations

Published on: March 11, 2021 | by Shepherd Smith Edwards & Kantas, LLP

New York Investment Advisor Has Several Customer Disputes on His BrokerCheck Record

Brian Wurdemann, an RBC Capital Markets registered representative, is named in a still-pending customer dispute in which the customer is seeking $1M in damages. The claimant contends that Wurdemann misrepresented three mutual funds, first while he was a UBS broker up through when he went to work at RBC Capital Markets.

This is one of several customer disputes involving Wurdemann, including one from 2004 that appears to still be pending.

Jubilado entabla reclamación de fraude por $500,000 contra Truist Investment Services por inversión en Northstar Financial Services (Islas Bermudas)

Published on: March 10, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Inversionista Latinoamericano alega Abuso y Fraude Financiero contra Ancianos

En una reclamación de arbitraje ante la Autoridad Reguladora de la Industria Financiera (FINRA) contra Truist Investment Services, Inc. (t/c/c SunTrust Investment Services, Inc.), un jubilado de América Latina reclama hasta $500 mil en daños. La reclamante sostiene que su corredora le recomendó inadecuadamente invertir dicha cantidad de dinero en Northstar Financial Services (Bermuda) Ltd. La compañía solicitó protección por quiebra el año pasado.

Truist es la unidad de corredores/agentes de bolsa de SunTrust Bank. La compañía está registrada con FINRA. Los agentes de ambas entidades promovieron fuertemente los productos de inversión y anualidades de renta fija y variable de Northstar Financial Services (Bermuda), los cuales pagaban comisiones, bonos y otros incentivos que eran mayores que los ofrecidos por los productos más típicos de SunTrust Bank.