Ronald Birnbaum (Ronald David Birnbaum CRD# 238250) is a broker and investment advisor currently registered with Advisory Group Equity Services Ltd. and Trust Advisory Group Ltd. In Newton, Massachusetts. Ronald Birnbaum sold his clients private placements in GPB Capital, which Massachusetts securities regulators accuse of violating securities laws by misleading investors.
Silver Law Group represents investors in claims to recover GPB investment losses. Contact us today at (800) 975-4345 for a no-cost consultation.
GPB Capital Holdings
GPB Capital Holdings, an alternative asset management company founded in 2013 by Scientologist David Gentile, raised $1.8 billion by using broker-dealers across the country to sell private placement investments to investors.
GPB is in the business of buying and managing companies such as car dealerships and garbage companies. A private placement in GPB couldn’t be sold, but investors liked the high dividends it paid.
Unfortunately, GPB hasn’t paid a dividend in years, and is being investigated by the New York Business Integrity Commission, FINRA, and the Securities and Exchange Commission (SEC). The company has been accused of being a Ponzi scheme and is being sued by a former partner and investors.
GPB’s Chief Compliance Officer and Managing Director was indicted on criminal charges for obstruction of justice.
In May, 2020, Massachusetts Secretary of the Commonwealth Securities Division filed an administrative enforcement action against GPB, which raised over $14 million from more than 180 investors in the state. The complaint filed by the Massachusetts Security Division alleges that GPB misled investors regarding its finances and concealed its self-dealing. The action seeks an order requiring GPB to “permanently cease and desist from further conduct”.
Due to its illiquidity, GPB investors have to hold GPB and risk further decline in their principal.
Registered brokers have an obligation to recommend investments that are suitable to their customers. GPB may not have been suitable for many investors, and they may be able to recover their losses by filing FINRA arbitration claims.
Silver Law Group has filed arbitration claims for GPB investors against broker-dealers such as SagePoint.
Ronald Birnbaum Disclosures
Ronald Birnbaum has been in the securities industry since 1993 and has 6 disclosures on his publicly-available FINRA BrokerCheck report, all customer disputes:
May, 2020: A customer dispute alleged “Failure to provide suitable due diligence, over concentration, suitability”. $100,000 in damages was requested. The dispute is pending as of this writing.
April, 2020: A customer dispute alleged “Failure to provide suitable due diligence, over concentration, suitability”. $75,000 in damages was requested. The dispute is pending as of this writing.
March, 2020: A customer dispute alleged “Failure to provide suitable due diligence, over concentration, suitability”. $200,000 in damages was requested. The dispute is pending as of this writing.
March, 2017: A customer dispute requested $141,850 in damages related to a private placement corporate bond whose reinsurer went bankrupt. The dispute is pending as of this writing.
March, 2016: A customer dispute alleged “Unsuitable investments, lack of supervision, breach of fiduciary responsibility”. The case was settled for $50,000.
January, 2013: A customer dispute related to an unsuitable investment was settled for $45,000.
Recover Ronald Birnbaum Or GPB Losses Through FINRA Arbitration
Silver Law Group, a nationally-recognized securities arbitration and investment fraud law firm, has extensive experience recovering losses for investors through FINRA arbitration. Our GPB attorneys have filed FINRA or securities arbitration claims in multiple states, including Florida, California, and Michigan.
Scott Silver, managing partner of Silver Law Group, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and represents investors across the country in securities investment fraud cases. If you have investment losses, contact Scott Silver of the Silver Law Group at email@example.com or toll free at (800) 975-4345 for a no cost consultation to discuss your options.