National investor fraud law firm, KlaymanToskes (“KT”), has filed multiple Financial Industry Regulatory Authority (“FINRA”) arbitration claims for clients who were solicited by broker-dealers to purchase private placement securities of GPB Capital Holdings (“GPB”) in the form of notes, and continues to investigate the sales practices of additional broker-dealers (“GPB Capital Investment Loss Investigation”). Under FINRA Rules, brokerage firms have an obligation to make suitable recommendations to their customers. They must also conduct adequate due diligence of facts concerning the risks associated with the investments.
GPB Capital Investigation
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. According to the Securities & Exchange Commission, GPB principals and their affiliates were charged “with running a Ponzi-like scheme that raised over $1.7 billion from securities issued by a New York-based asset management firm and registered investment adviser, GPB Capital.”
GPB Capital sold and marketed non-registered private placement notes through inadequate disclosure of illiquidity, high risks, and commissions which made the investments unsuitable for most investors. Securities under investigation include:
- GPB Holdings, LP
- GPB Cold Storage, LP
- GPB Automotive Portfolio, LP
- GPB Waste Management, LP
KlaymanToskes Related Investigation of GPB Capital – TD AdvisorDirect® Referral Program
KlaymanToskes also continues to investigate on behalf of investors who sustained losses in GPB Holdings, LP and other related non-registered private placement securities, as a result of recommendations from their investment advisor through the TD Ameritrade AdvisorDirect® Referral Program (GPB Capital TD Ameritrade).
TD Ameritrade, which was recently acquired by Charles Schwab, offers to help investors find a Registered Investment Advisor (RIA) through AdvisorDirect® advisory service. TD Ameritrade made clear that based on your personal needs, “Our AdvisorDirect® referral program gets you an introduction to an independent Registered Investment Advisor (RIA)”. According to securities attorney Lawrence L. Klayman, “TD Ameritrade is responsible to conduct adequate due diligence selecting investment advisors for their referral program and to supervise the account activities for the fees they receive directly from client accounts.”
GPB Capital Investigation – Contact Us
If you were encouraged to purchase private placement securities of GPB, and have information relating to sales practices and financial misconduct of brokerage firms and financial advisors in connection with the sale of GPB, you are encouraged to contact the attorneys of KlaymanToskes at (888) 997-9956, or Contact Us by email.
About KlaymanToskes, P.A.
K&T is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. KT has recovered more than $220 million for investors in FINRA arbitrations. KT has office locations in California, Florida, New York and Puerto Rico.