Private Placement

Published on: April 23, 2019

Scott Silver Speaks To AutoNews.com About GPB’s Legal Troubles

Scott Silver, the managing partner of Silver Law Group, recently spoke to AutoNews.com for an article about GPB Capital’s ongoing legal troubles. GPB Capital investments were sold by SagePoint Financial, National Securities, and other brokerage firms.

According to the article, GPB Capital Holdings is the majority owner of Prime Automotive Group, which is the 11^th-largest dealership group in the country. GPB is the subject of federal and state investigations, and investors are concerned. There is concern that it could collapse and leave Prime without its majority investor and cause people who’ve invested in GPB to lose their money. Continue reading

Published on: March 25, 2019

Did You Purchase GPB From William Crafa Of Royal Financial Associates?

by Silver Law Group

Broker William Crafa and Royal Alliance Associates are the subject of a FINRA claim on behalf of investors regarding the solicitation and recommendation to purchase GPB Capital Holdings private placement securities. Broker William Matthew Crafa and wealth management firm Royal Alliance Associates, Inc are the subject of a FINRA claim on behalf of investors regarding the solicitation and recommendation to purchase GPB Capital Holdings private placement securities.

GPB Capital Holdings, a New York-based “alternative asset investment firm” that invests in car dealerships and trash hauling companies, has been the subject of a tremendous amount of bad news lately. After raising $1.8 billion for its private placement funds over 10 years, in 2018 GPB announced it would stop raising new money to focus on fixing accounting and financial statements for its two largest funds, GPB Automotive Portfolio and GPB Holdings II. Continue reading

Published on: March 13, 2019

Financial Advisor’s Due Diligence On GPB Capital Holdings

by Silver Law Group

Questions have been raised about financial advisor's due diligence related to GPB Capital Holdings' private pacements and Five Star Carting. GPB Capital Holdings is being investigated by the state of Massachusetts, FINRA, the SEC, the New Jersey Bureau of Securities, and the FBI. If that weren’t enough, the New York City Business Integrity Commission, which oversees the city’s private trash industry, is also investigating the company.

The company says it buys “income-producing private companies” with the money it raises by having financial advisers sell private placements to investors. A private placement is a way to raise funding by selling securities to investors in a private, rather than a public, offering. Private placements involve significant risk, are illiquid, and are not suitable for many investors’ goals. Continue reading

Published on: March 8, 2019

FBI Now Investigating GPB Capital Holdings

by Silver Law Group

The FBI is now investigating GBP Capital Holdings. The state of Massachussetts, the SEC, and FINRA are also investigating. In February, we told you about three investigations focused on GPB Capital Holdings. The first is by the state of Massachusetts, with two additional separate investigations by FINRA and the SEC. On Thursday, February 28^th, the FBI, accompanied by officials from the New York City Business Integrity Commission, paid an impromptu visit to GPB’s corporate headquarters.

The announcement was made in a letter sent to investors, explaining that “authorities” made an unannounced visit to their offices, and “collected materials.” While the company did not disclose the identity of the “authorities,” an anonymous industry insider disclosed to the press that the visit was from the FBI and the Commission. Continue reading

Published on: February 21, 2019

Did You Lose Money With Atlanta, Georgia Stockbroker Sean Kelly?

by Silver Law Group

On October 25, 2018, the SEC obtained a court order to halt the alleged fraudulent actions of a registered stock broker and his companies.

The complaint by the SEC states that Sean Kelly used his companies, Lion’s Share Financial of East Cobb, Inc., Lion’s Share and Associates, Inc., and Lion Share Tax Services, LLC, to raise $1 million from a variety of investors. There were 12 investors, which included retirees. Kelly promised he would invest their funds into different investment products, but his promise was a lie. Instead of investing their funds into private placements and real estate, he used it on his own personal expenses. He continued to steal their money after receiving a SEC subpoena, and didn’t show up to his scheduled testimony. He used their money to buy Super Bowl tickets, expensive vacations, and also for cash withdrawals. The SEC alleges that Kelly has engaged in this fraud scheme since 2014, when he was still affiliated with Capital Financial Services.

Kelly was a representative of Center Street Securities from August 2017 to October 2018. He worked with Capital Financial Services from August 2012 to August 2017 in Marietta, Georgia. His records show that he filed for bankruptcy twice, in 2009 and in 2014.

Published on: February 11, 2019

FINRA and SEC Follow Massachusetts in GPB Capital Investigations

by Silver Law Group

After the state of Massachusetts began an investigation into 63 brokers selling private placements into GPB after the company stopped selling them, The SEC and FINRA have followed suit. Both agencies have launched their own investigations into the company and its practices.

The SEC Has Proposed New Regulations for Fiduciaries on silverlaw.com GPB announced in August that they would cease finding new investment money in order to focus on compliance and straightening out their accounting and financial statements for their two biggest funds. The SEC is, according to one executive, interested in seeing how accurate GPB’s disclosures are that were given to investors. The SEC also wants to review fund performances and distribution of the company’s capital to their investors, as well as broker-dealers who sold these private placements to investors.

Launched in 2013, GPB Capital became one of the fastest growing private placement firms selling shares of their funds through independent broker-dealers. Promoting themselves as offerors of alternative investment assets, New York-based GPB uses the business model of “acquiring income-producing private companies,” primarily auto dealerships. The company has raised $1.8 billion of investor funds.

Published on: February 1, 2019

Did Your Stockbroker Sell You GPB Capital

by Silver Law Group

WFG-Investments-Broker-Carl-Busch-Fined-and-Suspended-by-FINRA-300x200 Massachusetts is investigating allegations that 63 broker-dealer firms may still be selling private placements in GPB Capital Holdings LLC after the firm temporarily stopped raising funds.

The head of the Massachusetts Securities Division, William Galvin, received a tip from an independent firm, and began investigating GPB’s sales practices. His office has requested documentation relating to sales activity in the state, marketing materials provided to investors and information related to investor suitability.

GPB recently stated it is suspending their efforts to raise new capital to take care of overdue accounting and financial reporting of two of its biggest funds, GPB Holdings II and GPB Automotive Portfolio. These two funds have raised a combined $1.3 billion in investor capital, and became eligible to release financial information to the public over a year ago. They are now required to report to the Securities and Exchange Commission, but missed the April 30^th deadline.

Published on: January 30, 2019

Michael Venturino Customer Disputes Total $1.6M

by Silver Law Group

Michael Christopher Venturino (CRD #5872439) is a registered broker currently employed with Spartan Capital Securities, LLC (CRD #146251) of Garden City, NY. His previous employers include Trident Partners Ltd. (CRD #41258) of Woodbury, NY and Aegis Capital Corp. (CRD #15007) of Melville, NY. Two other prior employers, Craig Scott Capital, LLC (CRD #155924) and Brookstone Securities, Inc. (CRD #13366), both of Uniondale, NY, have been expelled by FINRA. He has been in the industry since 2010.

Venturino is the subject of 8 disclosures, most recently on 9/11/2018. This customer dispute alleges that from 12/24/14 to 02/28/18, he engaged in misrepresentation, unsuitable recommendations and churning. The client has requested damages of $290,359.83. This case is pending.

FINRA filed a disclosure on 7/17/2018 against Venturino for failing to comply with an arbitration award/letter. He was suspended for one day, as his counsel was arranging installment payments; it later became obvious that the claimant had no intention of doing so. Venturino filed a motion to vacate, and FINRA lifted his suspension.

Published on: January 17, 2019

Additional Allegations For Thomas Kelly For $500K

by Silver Law Group

Recently, we told you about broker Thomas Kelly (CRD #2877415) whose disclosure include customer disputes that total over $1M in damages. Recently, another customer filed a dispute for another $500,000. He is currently employed with Aegis Capital (CRD #15007) of New York, NY.

Securities Arbitration Claims Against National Securities Corp. on silverlaw.com The claim, filed on 11/1/2018, alleges “suitability, unauthorized trading, breach of fiduciary duty & negligence,” along with the request of $500,000 in damages. This new case is currently “pending,” and no other information is available.

Our securities arbitration attorneys represent victims of cold calls, excessive trading, churning and unsuitability. National Securities Corp. is the subject of multiple arbitration claims for unsuitable investments and claims including private placements.

Published on: December 28, 2018

Silver Law Group Client Wins FINRA Arbitration Award Against Texas Oil Broker-Dealer Including $1,000,000.00 in Punitive Damages

by Silver Law Group

FINRA Reports Brokers Nas Adel Allan and Gregory Anastos Made Unsuitable Recommendations on elderfinancialfraudattorneys.com Silver Law Group represented the Claimant in a FINRA arbitration claim against Texas E&P Partner, Inc. and Mark Plummer. Scott Silver, managing partner of Silver Law Group, a leading securities and investment fraud law firm, said “the Award is significant because we have seen a rise in cases involving private placements and alternative investments and we are grateful that the FINRA Panel recognized the damage caused by Respondent.

The securities arbitration claim alleged that Respondents sold a Reg D private placement to the Claimant without disclosing all of the risks and the investment was unsuitable. The FINRA Statement of Claim further alleged that the Respondents charged excess commissions or markups. Significantly, the FINRA Arbitration Panel found that Respondents are jointly and severally liable for and shall pay to Claimant the sum of $1,000,000.00 in punitive damages pursuant to Mastrobuono v. Shearson Lehman Hutton, Inc., 514 U.S. 52, 64 (1995).

If you’ve lost money investing in unsuitable private placements or Reg “D” offerings, you may be able to recover your investment losses. We take cases on a contingency fee basis, meaning you pay nothing unless we recover. Please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.