Investor Lawyers Blog

Missouri and Illinois Fraud Lawsuits Say Ex-GPB Capital Holdings CEO and Ascendant Capital Owner Illicitly Made Over $40M in Over $1.7B Ponzi Scam

Published on: March 1, 2021 | by Shepherd Smith Edwards & Kantas, LLP

States Allege Self-Dealing: Key GPB Capital Parties Used Investors’ Money to Fund Luxury Expenses

In separate lawsuits suing GPB Capital Holdings and other key parties for defrauding investors in a more than $1.8B Ponzi scam, Missouri and Illinois regulators are accusing former GPB Capital Holdings CEO, David Gentile, and Ascendant Capital owner, Jeffry Schneider, of illicitly collecting over $40M from the alternative asset firm’s operations.

The two men, along with ex-GPB Managing Partner, Jeffrey Lash, were recently arrested in a related federal criminal case that was brought parallel to the US Securities and Exchange Commission (SEC)’s own civil lawsuit. GPB Capital Holdings is an alternative asset firm that is accused of operating like a Ponzi scam that defrauded over 17,000 investors.

Ex-David Lerner Associates Broker Charles Bonilla Suspended For Alleged Unsuitable Energy Investment Recommendations

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

Former David Lerner Associate Broker May Have Sold Spirit of America Energy Fund Among Others to Customers

The Financial Industry Regulatory Authority (FINRA) has suspended Florida-based broker, Charles Bonilla, for six months. The action comes over allegations that he unsuitably recommended two energy investments to customers while he was a David Lerner Associates stockbroker without having enough knowledge about them.

Bonilla agreed to the FINRA suspension. He will pay both a $5K penalty and more than $22,400 in disgorgement plus interest. However, he is not denying or admitting to the self-regulatory organization’s (SRO’s) findings.

Former Janney Montgomery Scott Broker Apostolos Pitsironis Arrested For Defrauding Investors

Published on: February 23, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Ex-New York Stockbroker Named In Multiple Customer Disputes

Apostolos Nicolas Pitsironis, a former-Janney Montgomery Scott registered representative who was barred by the Financial Industry Regulatory Authority (FINRA) in 2019 for allegedly defrauding investors, was arrested on February 10 in Dix Hills, New York in a parallel criminal fraud case. Prosecutors contend that he used ex-customers’ funds to pay his expenses, including gambling debts and credit card charges.

According to the US Attorney’s Office for the Eastern District of New York, Pitsironis stole $411K out of one couple’s account. If convicted of wire fraud, Pitsironis could spend up to 20 years behind bars.

Investor Blames David Lerner Associates Broker Glenn Werner For Investment Losses

Published on: February 22, 2021 | by Shepherd Smith Edwards & Kantas, LLP

FINRA Arbitration Claim Seeks $250K in Damages, Possibly Involving Energy 11 LP

An investor has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim naming David Lerner Associate, Glenn Howard Werner. Seeking $250K in damages, the claimant contends that misrepresentations and omissions, unsuitable investment recommendations, and a breach of fiduciary duty occurred.

While not specified in Werner’s BrokerCheck, some sources report that mutual funds and energy investments, including Energy 11, LP may have been involved.

JP Morgan Securities & Two Former Brokers Ordered to Pay $19M, Found Liable for Elder Financial Abuse

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

Unauthorized Trading and Abuse of Fiduciary Duty By Older Investor’s Grandsons

A Financial Industry Regulatory Authority (FINRA) arbitration panel has ruled that JP Morgan Securities (JPM) and its ex-brokers, Avi Elliot Schottenstein and Evan A. Schottenstein, must pay a senior investor $19M in her investment fraud claim over losses sustained from the unauthorized trading of complex products in her brokerage account.

The claimant is Beverley Schottenstein of Bal Harbour, Florida, of the family that owns holding company Schottenstein Stores Corp. The two former JP Morgan registered representatives are her grandsons.

Triad Advisors To Pay $194K For Supervisory Failures Involving Short-Term Trading of Mutual Fund Class A Shares

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

Settlement in FINRA Case Involves Repaying Nearly $44K to Affected Customers

The Financial Industry Regulatory Authority (FINRA) has ordered Triad Advisors to pay a $150K fine for not adequately supervising both short-term trades involving Class A shares of mutual funds and variable annuity exchanges. The self-regulatory organization (SRO) also accused the Atlanta-headquartered broker-dealer of not making timely disclosures involving customer complaints and arbitration.

Triad Advisors, which is an Advisor Group network brokerage firm, consented to repay clients that were affected nearly $44k as part of its settlement for this case. It is not, however, denying or admitting to FINRA’s findings.

NY Retiree Says David Lerner Associates Broker Mike Norton Sold Her Unsuitable Energy 11 Investment

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

FINRA Arbitration Claim Seeks Up to $100K in Damages for Investor’s Losses

A New York widow is pursuing damages from David Lerner Associates after she suffered losses from investments she purchased at broker Michael Joseph Norton’s recommendation, including the firm’s proprietary Energy 11, LP private placement. Norton, a Syosset, NY stockbroker, has been named in several customer disputes.

Our New York securities fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are representing this senior investor in her Financial Industry Regulatory Authority (FINRA) arbitration claim against the brokerage firm. She is seeking up to $100K damages along with interest, costs, and legal fees.

SEC Seeks Court-Appointed Monitor To Protect Investors Victimized In Mass GPB Capital Ponzi Scam

Published on: February 12, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Regulator Wants to Prevent Alternative Asset Firm From Causing Investors More Financial Harm

In U.S. District Court for the Eastern District of New York in Brooklyn, the Securities and Exchange Commission (SEC) has submitted a court filing asking that a monitor be appointed to prevent GPB Capital Holdings, LLC from committing more alleged misconduct and disposing of any assets that could be used to recover investors’ money. The regulator is suing the alternative asset firm for allegedly defrauding more than 17,000 investors in an over $1.7B Ponzi scam.

The SEC contends that having a monitor is warranted and needed. The Commission wants to give this person broad powers over “non-privileged books, records, and account statements for the entities and assets” related to GPB Capital Holdings’ portfolio companies and funds.

Woodbury Financial Services Broker Robert Ginsberg Accused of Unsuitable Investment Recommendations

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

Wallingford, Connecticut Investment Advisor Named in Four Pending FINRA Arbitration Cases

If you suffered investment losses while working with Woodbury Financial Services broker, Robert Scott Ginsberg, please contact Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com). The Woodbury Financial investment advisor, who is based in Wallingford, Connecticut, is named in four pending customer disputes.

He has been in the securities industry for 12 years. Prior to working for Woodbury Financial Services in 2016, where he is also a registered investment advisor, Ginsberg was a registered representative for Investors Capital Corp. and Investors Capital Advisory.

New York And Other States Sue GPB Capital Holdings For Mass Ponzi Scam

Published on: February 9, 2021 | by Shepherd Smith Edwards & Kantas, LLP

State Lawsuits Come After SEC Complaint and FBI Arrests

New York Attorney General Letitia James is suing GPB Capital Holdings along with five co-defendants for running a mass Ponzi scam.

The NY AG contends that the alternative asset firm and private equity fund manager, which is based in the state, defrauded investors throughout the US of over $700M. The complaint said that more than 1,400 of those victims were New Yorkers who invested over $150M.