SSEK Investigating Ladenburg Thalmann & Triad Advisors Over GPB Capital Investor Claims
In its quarterly report to the US Securities and Exchange Commission (SEC), Ladenburg Thalmann Financial Services notes that one of its brokerage firms, Triad Advisors, is the subject of six Financial Industry Regulatory Advisory (FINRA) arbitration complaints by customers seeking $1.65M in damages after the firm’s brokers sold them GPB private placements.
GPB Capital Holdings is accused of operating a $1.8B Ponzi scam. Many investors are claiming massive losses in the wake of the various GPB funds plunging in value, the suspension of investor redemptions, and the regulatory and criminal probes swirling around the alternative asset firm.
Ladenburg is a diversified financial services company that includes five broker-dealers: Triad Advisors, Securities Service Network, Securities America, Investacorp, and KMS Financial Services.
According to Bloomberg News, Ladenburg is speaking with “potential buyers,” including Advisors Group, after the news that at least one of its broker-dealers is now being pursued by customers for selling GPB private placements which is not good news for the financial services company.
Multiple Accusations Held Against Triad Advisors
In the report, Ladenburg said that the investor fraud cases accuse Triad Advisors of negligence for allowing its registered representatives to promote and sell GPB investments that were incredibly high risk and unsuitable to customers. They are also alleging failure to supervise, breach of contract, negligence, and breach of fiduciary duty.
Ladenburg also said that the recent class action securities fraud lawsuits against GPB Capital Holdings, its funds, and other parties, includes Triad Advisors – along with 75 other broker-dealers that sold the private placements to customers – as defendants.
The complaint brought in Texas, outlines a much more complex and layered scheme than your typical Ponzi fraud, with numerous parties enabling and participating in defrauding investors. GPB Capital Holdings, its executives and others have allegedly become enriched by alleged scams with brokerage firms and their brokers earning over $160M in commissions.
Over the past year, Shepherd Smith Edwards and Kantas (SSEK Law Firm), has spoken to many investors all over the US seeking to recoup the money lost from purchasing GPB private placements. We have already filed a number of arbitration fraud claims against brokerage firms on our clients’ behalf.
Other GPB Developments
In October, GPB CCO Michael Cohn was charged with obstruction and accused of stealing information from the SEC during his time as one of the regulator’s examiners and sharing what he knew with other GPB executives.
Two former GPB executives have directly accused the alternative asset firm, which invests in trash management and auto dealers, of running this Ponzi scam. They are suing the company in separate lawsuits. Both the SEC and FINRA are investigating GPB Capital Holdings.
Meanwhile, US Secretary of the Commonwealth of Massachusetts, William Galvin, is conducting an ongoing investigation of more than 60 broker-dealers, including Triad Advisors, that sold GPB investments to customers.
The Federal Bureau of Investigation (FBI) is conducting its own criminal probe into GPB and earlier this year raided the company’s offices. Dozens of investors have filed arbitration claims seeking to recover their losses.
Contact SSEK Law Firm today if you were sold a GPB private placement by a Triad Advisors broker or any other broker at another brokerage firm. Our broker-dealer misconduct lawyers would be happy to offer you a free, no-obligation case consultation.