Silver Law Group Files First Arbitration Claim Against SagePoint Financial Relating To GPB Capital
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.
With all those problems, investors are beginning to sue the broker-dealers who advised them to buy GPB so they can recover their losses.
Silver Law Group’s managing partner, Scott Silver, recently spoke to InvestmentNews.com about the firm’s case against Advisor Group company SagePoint Financial.
“There was a lack of due diligence. Clients were assured that the assets were strong, their principal was secure and the private placements would provide an income stream for years to come,” Silver told the site about the claim’s allegations.
GPB Capital Holdings buys companies like auto dealerships with the money it raises by having financial advisers sell “private placements” to investors. Private placements involve significant risk, are illiquid, and are not suitable for many investors’ goals. But they were appealing to many investors because of the high return they were supposed to pay.
GPB raised over $1.8 billion through registered representatives from independent broker-dealers selling these high-commission private placements as “alternative investments.”
Recovering GPB Losses Through FINRA Arbitration
If you purchased GPB Capital, you may have a claim to recover your money. Broker-dealers have an obligation to recommend suitable investments to their clients and perform due diligence into the products they sell them. FINRA-registered brokers and firms are subject to arbitration to resolve securities-related disputes.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. Scott Silver is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and represents investors nationwide in securities investment fraud cases. Please contact Scott Silver of the Silver Law Group for a free consultation at email@example.com or toll free at (800) 975-4345.