Shepherd Smith Edwards and Kantas Investigates Sagepoint Financial Over GPB Private Placement Sales

Sagepoint Financial Customers Suffer Losses from GPB Private Placements and Funds

If you are an investor who suffered losses after a Sagepoint Financial broker sold you GPB private placements, our securities fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) would like to talk to you. GPB Capital Holdings is accused of running a $1.8B Ponzi scam. Sagepoint Financial is one of more than 60 broker-dealers whose registered representatives sold these investments to their customers.

Sagepoint Financial is part of Advisor Group, a huge network of independent wealth management firms. In August, the broker-dealer and another Advisor Group firm, Royal Alliance, were prominently named by the lead plaintiffs in the first class action securities case against GPB Capital. The firms’ brokers had sold them their investments in the GPB Automotive Portfolio and the GPB Holdings II funds.

The plaintiffs, like so many other investors, had sustained substantive financial losses in the wake of the Ponzi fraud allegations, the suspension of investor redemption, the massive drop in value of all of the GPB Funds, and the other regulatory and civil troubles plaguing the alternative asset firm.

GPB Investors File FINRA Arbitration Claims

GPB fund investors have had no choice but to try to get their money back through filing investor fraud claims in Financial Industry Regulatory Authority (FINRA) arbitration against the broker-dealers and their brokers that sold them the investments. This is not the type of investor fraud case that you want to pursue without experienced legal representation.

There are also investors that have chosen to go after GPB Capital Holdings directly via litigation, including another class action securities fraud lawsuit that was filed several weeks ago.

Elderly Investor Claims Sagepoint Financial Overconcentrated Her Portfolio with GPB Funds

Sagepoint Financial was recently named in another customer dispute, this one directed at the firm. The claimant, an elderly investor, filed a $100K case before FINRA. She is accusing the broker-dealer of overconcentrating her portfolio in the GPB private placements, as well as failing to tell her these investments were illiquid and that she wouldn’t be able to retrieve her money whenever she wanted.

In its sales of the GPB investments to all of its clients, Sagepoint Financial earned substantial commissions. As a matter of fact, while GPB investors have no way of even knowing how much their investments are worth – if anything at all – the alternative asset firm keeps delaying when it will supposedly provide audited financial statements. Brokerage firms and their brokers are believed to have made over $160M in commissions from the private placement sales.

Meanwhile, investors are now saying that not only were they not fully apprised of the risks involved in the GPB funds, but for many, these private placements were not suitable investments for them to begin with.

GPB Private Placements Are Not for Inexperienced Investors

GPB private placements should not be sold to every kind of investor. Only experienced investors whose portfolios can handle the risks involved should have been the ones to whom brokers recommended these investments. That said, even experienced investors are now claiming significant losses.

Experienced Securities Fraud Lawyers

Already, SSEK Law Firm is pursuing a number of brokerage firms via GPB investor fraud claims on behalf of our clients. Some of these cases are slated to go before FINRA arbitrators as early as the Spring of 2020.

Please contact our GPB investor fraud lawyers if you suffered losses from investing in the following:

  • GP Automotive Portfolio
  • GPB Holdings II
  • GPB Holdings II
  • GPB Cold Storage
  • GPB Waste Management
  • GPB NYC Development

SSEK Law Firm works with clients throughout the US. Over the years, we have successfully gone up against the largest broker-dealers on Wall Street on behalf of investors.

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