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Articles Tagged with GPB Private Placements

Ex-Concorde Investment Services Broker Allegedly Made Negligent Recommendations 

Robert Scott Smith, the President of Peregrine Private Capital in Newberg, Oregon, and a former Concorde Investment Services, is named in multiple Financial Industry Regulatory Authority (FINRA) arbitration claims by former customers that invested in GPB private placement funds at his recommendation. 

GPB Capital Holdings is accused of running a $1.8B Ponzi scam. Smith is one of a number of Concorde Investment Services brokers who sold this alternative asset firm’s private placements to customers. 

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. 

Three Pending FINRA Arbitration Claims Accuse Triad Advisors Broker of Unsuitability

Lee Duckworth, the CEO of investment advisory firm Capital Wealth Management and a Triad Advisors stockbroker, was recently named in three Financial Industry Regulatory Authority (FINRA) arbitration claims accusing him of making unsuitable investment recommendations to customers. 

At least one of the disputes involves private placements from GPB Capital Holdings, an alternative asset firm accused of running a more than $1.5B Ponzi scam. Duckworth is a West Warwick, Rhode Island broker and investment advisor.

Investor’s FINRA Arbitration Claim Seeks Damages of Up to $100K

A Florida retiree has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against the brokerage firm, National Securities Corp. 

The claimant contends that agents of National Securities Corp overconcentrated his account in real estate investment trusts (REITs), privately traded securities, and private placements. This included a large position in GPB Capital Holdings, which is accused of operating an over $1.5B Ponzi scam.

Joseph Michaletz Named in Multiple Customer Disputes Since December 2019

Joseph Gerard Michaletz, a Dai Securities broker, is the subject of seven customer complaints that were filed over the last eight months. The allegations against him claim that he sold GPB private placements to customers for whom they were unsuitable. This happened while he was a registered representative for Concorde Investment Services and before that with Triad Advisors.  

GPB Capital Holdings LLC  is accused of operating a $1.8B Ponzi scam. Many brokers and their firms did not perform the proper due diligence to make sure that the GPB Funds were legitimate investments that were safe and suitable for customers. 

Delayed Filing with the SEC Shows 45.2% Drop in AUM Over 18 Months 

Last month, GPB Capital Holdings finally filed its Form ADV with the US Securities Exchange Commission (SEC) after requesting an extension from the regulator in 2019.  

In the form, the alternative asset firm, which is already under siege in the wake of numerous federal and state regulator investigations, an FBI probe, and lawsuits accusing it of operating a massive Ponzi scam, reported a $196.3M decline in assets under management (AUM) over 18 months from the end of 2017 to the end of June 2019. That’s a 45.2% drop from $434.3M in AUM to $238.6M. 

Investor Sues Kalos Capital Over GPB Capital Losses

A widower retiree in his eighties is suing Kalos Capital for losses he suffered in GPB Capital Holdings’ private placements and other risky investments that were recommended to him by Kalos broker, Jason Mosher.  

The claimant contends that Mosher, who operates his business under the name Sheppard Mosher but is an employee of Kalos, overconcentrated his IRA in GPB investments and other risky securities including private Real Estate Investment Trusts (REITs) and privately traded securities. Now, this elderly investor is seeking up to $500K in damages.

Cohn, Also A Former SEC Examiner, Is Charged With Obstruction

The criminal trial of Michael Cohn, the ex-GPB Capital Holdings chief compliance officer, has been postponed after he expressed concern that his pre-existing health conditions placed him at a higher risk of contracting the coronavirus (COVID-19). 

Cohn is charged by federal prosecutors with obstruction of justice. The US government alleges that he took information about US Securities and Exchange Commission (SEC)’s investigation into the alternative asset firm, while he was still an SEC examiner, and shared it with GPB executives.

Elderly Investor Claims $250K in GPB Fraud Losses

In yet another GPB private placement fraud case, our broker fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm) have filed a claim on behalf of an investor. 

This time, the respondents are Pruco Securities and Kalos Capital, which the firm has gone after in previous private placements claims over the same investments and broker, Christopher Shaw. The claimant, who is an elderly woman from North Carolina is reporting over $250K in losses. She is seeking up to $500K in damages plus interests and other costs. 

Texas-Based Broker Sold GPB Private Placements To Retiree Couple 

Once again, Shepherd Smith Edwards and Kantas (SSEK Law Firm) has filed an investor fraud claim against a broker-dealer after its financial advisor sold investments in GPB Capital Holding’s funds to customers. 

This time, the brokerage firm is International Assets Advisory (IAA), LLC and the broker involved is Williams Keen Butcher who is based in Houston. 

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