National investor fraud law firm, KlaymanToskes (“KT”), 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).
What is TD Ameritrade’s AdvisorDirect Referral Program?
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’s website makes clear that based on your personal needs, “Our AdvisorDirect® referral program gets you an introduction to an independent Registered Investment Advisor (RIA)”.
GPB Capital TD Ameritrade Investigation – SEC Filed Complaint in February 2021
According to the Securities and Exchange Commission (SEC), GPB principals and their affiliated entities 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”.
The SEC alleges in its February 2021 complaint that David Gentile, the owner and CEO of GPB Capital, and Jeffry Schneider, the owner of GPB Capital’s placement agent Ascendant Capital, lied to investors about the source of money used to make an 8% annualized distribution payment to investors. The defendant told investors that the distribution payments were paid exclusively with monies generated by GPB Capital’s portfolio companies. However, GPB Capital actually used investor money to pay portions of the annualized 8% distribution payments.
GPB Capital TD Ameritrade AdvisorDirect – KlaymanToskes Investigation
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
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.”
Did You Invest in GPB Capital through TD Ameritrade AdvisorDirect Program? Contact Us
Investors who purchased GPB Capital private placement notes through the TD Ameritrade AdvisorDirect® Referral Program and those who have information relating to the manner in which the their accounts were handled are encouraged to contact Lawrence L. Klayman, Esq., at (561) 542-5131.
About Klayman Toskes
KT 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.