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Boca Raton, FL – May 10, 2019 – The Securities Arbitration Law Firm of KlaymanToskes (www.klaymantoskes.com) announced today that it has filed a claim against Royal Alliance Associates, Inc. (“Royal Alliance”) on behalf of investors who sustained losses from the purchase of private placement securities of GPB Capital Holdings (“GPB”) in the form of notes.
According to the claim, the Investors instructed Royal Alliance to invest their hard-earned savings and inheritance in a conservative manner, protecting their principal and present income. Instead, Royal Alliance concentrated a substantial portion of the investors’ assets into illiquid alternative investments and private placements, including securities of GPB. Royal Alliance’s actions caused the investors to lose over $1,000.000.00 of their hard-earned savings and inheritance.
More than 60 brokerage firms sold $1.5 billion of high-risk private placement GPB funds, including Royal Alliance Associates Inc., Sagepoint Financial Inc., FSC Securities Corp., and Woodbury Financial Services Inc. The private placement GPB funds of GPB Automotive Portfolio and GPB Holdings II raised $622.1 million and $645.8 million respectively. Since flagrantly missing its April 30, 2018, deadline to register the raised funds, GPB’s offices in Manhattan have been searched by the FBI. The SEC also issued a subpoena to GPB seeking information. Additionally, GPB’s auditor recently resigned over the perceived risks of the ongoing investigations.
The sole purpose of this release is to investigate the sales practices and financial misconduct of brokerage firms and financial advisors in connection with the sale of GPB to their customers. Investors who purchased these investments are encouraged to contact Lawrence L. Klayman, Esq. of KlaymanToskes at (888) 997-9956, or visit our website at www.klaymantoskes.com.