Silver Law Group recently filed a FINRA arbitration claim against Madison Avenue Securities, LLC and registered representatives Angela Sloan, Robert Luley, Jr., and Katherine Spearman (a/k/a Katherine McConnell). The investor’s claims arise out of recommendations to invest in GPB Automotive Portfolio, LP, a private placement managed by GPB Capital Holdings, LLC. Among other things, the investor alleges that Madison Avenue Securities and its registered representatives failed to conduct adequate due diligence on the GPB investment and that the recommendation to invest in GPB was unsuitable, negligent, and constituted a breach of fiduciary duty.
Silver Law Group, a law firm that specializes in representing investors in securities arbitration proceedings administered by the Financial Industry Regulatory Authority (FINRA), has filed numerous arbitration claims against broker-dealers arising out of the improper marketing and sale of investments in various funds managed by GPB Capital Holdings, LLC, including:
- GPB Cold Storage
- GPB Automotive Portfolio
- GPB Holdings
- GPB Holdings II
- GPB Holdings III
- GPB Waste Management
Silver Law Group is continuing to investigate more GPB-related claims every day.
Problems With GPB
GPB is an alternative asset management firm that focuses on acquiring income-producing companies in several industries, including automotive retail dealerships and waste management. GPB raised more than $1.8 billion from investors through private placements. In the process, GPB paid broker-dealers, including Madison Avenue Securities, more than $150 million in commissions and fees.
Over the past few years, GPB is under investigation by the Securities and Exchange Commission (SEC), announced that some of its financial statements can no longer be relied upon, was raided by the FBI and New York City Business Integrity Commission, had one of its insiders criminally indicted, and is the subject of several civil lawsuits arising from its business practices, including a class action.
Many of GPB’s funds have stopped paying dividends, have substantially declined in principal value, and are difficult, if not impossible, to liquidate, leaving investors “stuck” in these investments.
Given the massive nature of the fraud allegedly being operated by GPB and facilitated by broker-dealers across the country, FINRA and some state regulatory bodies are investigating the broker-dealers who recommended GPB.
Did You Lose Money Investing In GPB Capital?
The funds offered by GPB are private placement investments, which are unsuitable for most investors given the complexity and high risk involved. Private placements are not subject to many of the laws and regulations designed to protect everyday investors. Prior to recommending a private placement like GPB, broker-dealers are obligated to conduct due diligence to ensure that the investment is suitable for the investor. This includes a follow-up concerning any red flags that may arise.
Furthermore, brokerage firms like Madison Avenue Securities are obligated to supervise their brokers and to implement policies and procedures to prevent the improper recommendation and sale of private placements like GPB. If the brokerage firm fails to properly supervise its employees, the firm may be liable to investors for the resulting losses.
Silver Law Group has already filed claims on behalf of GPB investors against many of the 60+ broker-dealers that improperly marketed and sold GPB to their customers. If you or someone you know invested in any of GPB’s offerings, please contact the Silver Law Group toll free at (800) 975-4799 or email email@example.com for a confidential consultation.