The Levin Papantonio law firm is currently investigating brokerage firms misconduct relating to sales practices to their customers. It appears that some firms were recommending that their customers invest in GPB Capital Holdings’ high-risk, high-commission private placements.
According to news sources, Securities Regulators, such as the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have been investigating GPB Capital, LLC (GPB), which raises capital from investors through private placement funds, which invest in auto dealerships and the waste management industry. Registered financial advisors and investment advisors from dozens of broker-dealers sold the high risk, high-commission securities.
Recently, the FBI made an unannounced visit to the Manhattan offices of GPB Capital, along with the New York City Business Integrity Commission. The FBI has not commented on its findings.
Private placement investments are complex, risky and often sold under a high fee and commission structure. This type of structure can put you at a disadvantage right out of the gate. A private placement has minimal regulatory requirements to abide by and doesn’t have to be registered with the SEC. Generally, the offering is aimed at a small pool of wealthy individuals or accredited investors. The investment does not require a prospectus.
Brokerage firms are required to conduct due diligence on an investment before recommending to a client or investor. Financial advisors have a duty to disclose the risks associated with an investment product, as well as to understand if the investment passes the suitability test to determine if it meets the individual investor’s investment objectives and risk profile.
If you or a loved one invested in GPB Holdings or in the following GPB funds, your investment may be negatively affected.
- GPB Automotive Portfolio
- GPB Holdings II
- GPB Holdings III
- GPB Holdings Qualified
- GPB Cold Storage
- GPB NYC Development
- GPB Waste Management Fund
Here’s a list of just some of the brokerage firms who sold or may have sold GPB investments:
- Royal Alliance Associates Inc.
- Sagepoint Financial Inc.
- FSC Securities Corp.
- Pursche Kaplan Sterling Investments
- Geneos Wealth Management
- Concorde Investment Services
- Aegis Capital
- Woodbury Financial Services Inc.
Contact our investment fraud attorneys at the law offices of Levin Papantonio or fill out a free claim evaluation form on this site. Or call (800) 277-1193. You may be entitled to recover your losses.