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The news keeps getting worse for GPB Capital. The troubled company reported Friday that the value of its two biggest investment funds, GPB Holdings II and GPB Automotive Portfolio, have declined by 25% and 39%, respectively.The other five GPB funds also have significant declines in value, according to the company.The news keeps getting worse for GPB Capital. The troubled company reported Friday that the value of its two biggest investment funds, GPB Holdings II and GPB Automotive Portfolio, have declined by 25% and 39%, respectively.

The other five GPB funds also have significant declines in value, according to the company. Continue reading

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Back in August, we told you about Bradley Joseph Tennison (CRD#: 156988), who was barred by FINRA after his discharge from Genos Wealth Management of Mesa, AZ. Tennison was discharged for “selling away,” the practice of offering and selling securities that are not offered by the broker’s firm of employment. The firm was unable to locate any records of these investments, and Tennison was not completely cooperative.A new customer dispute was filed on 10/19/2018, alleging that Tennison recommended to the client that he sell his investments in order to invest in a private placement trust that Tennison managed. Tennison also did not disclose to the customer that he was strictly prohibited from recommending these kinds of investments without review and the express approval from Genos. This allegation led to his discharge from Genos in April of 2018. This customer requests damages of $1,200,000. The case is currently pending.Back in August, we told you about Bradley Joseph Tennison (CRD#: 156988), who was barred by FINRA after his discharge from Genos Wealth Management of Mesa, AZ. Tennison was discharged for “selling away,” the practice of offering and selling securities that are not offered by the broker’s firm of employment. The firm was unable to locate any records of these investments, and Tennison was not completely cooperative.

A new customer dispute was filed on 10/19/2018, alleging that Tennison recommended to the client that he sell his investments in order to invest in a private placement trust that Tennison managed. Tennison also did not disclose to the customer that he was strictly prohibited from recommending these kinds of investments without review and the express approval from Genos. This allegation led to his discharge from Genos in April of 2018. This customer requests damages of $1,200,000. The case is currently pending. Continue reading

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Registered investment advisor Direct Lending Investments, LLC (CRD# 282476) has been sued by the SEC with multiple fraud charges relating to $11 million in management and performance fee overcharges on private placements. The company also falsified loan repayment information and inflated their annual returns for many years. The suit was filed on March 22 in Los Angeles.A DLI employee notified the SEC that Direct Lending’s founder, Brendan Ross, “knowingly engaged in a multi-year scheme to mask the poor performance of one of the funds’ largest investments,” the SEC said in its lawsuit. Ross engineered loans that were valued “at par,” but should have been valued at zero. Ross also over-stated the company’s valuation of one of its loans, to a company called Quarterspot, an online small-business lender.Registered investment advisor Direct Lending Investments, LLC (CRD# 282476) has been sued by the SEC with multiple fraud charges relating to $11 million in management and performance fee overcharges on private placements. The company also falsified loan repayment information and inflated their annual returns for many years. The suit was filed on March 22 in Los Angeles. Continue reading

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Silver Law Group has filed the first arbitration claim against SagePoint Financial related to GPB Capital investments. The claim, filed on behalf of a client who invested in GPB’s automotive fund, is for $400,000.GPB is under investigation by federal and state agencies, and is accused of being a Ponzi scheme. In December 2018 they stopped paying investors, the value of their private placement investments has gone down, and the future of the company is uncertain.Silver Law Group has filed the first arbitration claim against SagePoint Financial related to GPB Capital investments. The claim, filed on behalf of a client who invested in GPB’s automotive fund, is for $400,000.

GPB is under investigation by federal and state agencies, and is accused of being a Ponzi scheme. In December 2018 they stopped paying investors, the value of their private placement investments has gone down, and the future of the company is uncertain. Continue reading

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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.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 11th-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

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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

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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

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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 28th, 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

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https://www.silverlaw.com/blog/wp-content/uploads/2017/07/Have-You-Lost-Money-with-Cantone-Research-Inc.-300x199.jpgOn 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.

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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.comGPB 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.

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