FINRA Arbitration Claims Pile Up Against GPB Capital Selling Brokers

Scott Silver was interviewed in a recent InvestmentNews article about Silver Law Group’s FINRA arbitration claims against the broker dealers who sold GPB Capital private placements to investors.

GPB Capital Holdings is a New York-based alternative asset management firm that raised $1.8 billion since it was founded in 2013 by Scientologist David Gentile. GPB used nearly 60 broker dealers across the country to sell private placements to individual investors. The alternative asset manager used the money to invest in companies such as auto dealerships and waste management businesses.

Investors were sold GPB believing that they would earn a healthy return on their investment, but GPB hasn’t paid distributions to investors since 2018.

GPB is the subject of multiple government investigations and enforcement actions and has been sued by investors and accused of being a Ponzi scheme. GPB’s chief compliance officer was criminally indicted for obstruction of justice.

In 2019, GPB reported that the values of its funds are down significantly, but because of its illiquidity, investors are stuck holding the investment and risking a further decline in its value.

Recovering GPB Losses Through FINRA Arbitration

To recover their losses, GPB investors are now filing FINRA arbitration claims against the broker dealers who sold the private placements to them, such as SagePoint Financial, which Silver Law Group has filed multiple FINRA arbitration claims against.

Silver Law Group also has several arbitration claims pending against Coastal Equities, Inc. and broker Luke Johnson of Scottsdale, Arizona regarding GPB and other illiquid investments such as real estate investment trusts (REITS).

Johnson’s publicly-available BrokerCheck report shows that three arbitration claims against him have been settled, with 13 more pending.

Scott Silver, Silver Law Group’s managing partner, said of the allegations made on behalf of his clients “GPB was the red flag but there was plenty of other garbage (that Johnson sold to clients)…It’s the general over concentration of investors’ portfolios in high risk, high commission alternative investments.”

Claims to recover GPB losses for investors also allege that the broker dealers failed to conduct adequate due diligence into the investment.

Contact Silver Law Group To Recover Your GPB Capital Losses

Silver Law Group is a nationally-recognized investment fraud and securities arbitration law firm extensive experience recovering losses for investors through FINRA arbitration. Our GPB attorneys have filed FINRA or securities arbitration claims in California, Florida, Michigan, and more.

Scott Silver is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and represents investors nationwide and internationally in securities and investment fraud cases. Contact Scott Silver for a no-cost consultation to discuss your options at ssilver@silverlaw.com or toll free at (800) 975-4345.