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Articles Posted in FINRA Arbitration

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Scott Silver, Silver Law Group’s managing partner, was recently interviewed for an article on Investmentnews.com that details the alleged “hot air” spewed by brokers to sell $1.8 billion of GPB Capital Holdings to investors. Silver Law Group represents investors in claims to recover GPB investment losses. If you have losses from investing in GPB, contact Silver Law Group for a no-cost consultation at (800) 975-4345 or at ssilver@silverlaw.com. Founded in 2013 by Scientologist David Gentile, GPB calls itself an alternative asset manager that invested in income-producing companies, including auto dealerships and a waste management company. To raise capital, GPB used dozens of regional broker dealers and advisory firms across the country to sell private placements  in its various funds to investors. Investors in GPB were told by their brokers and financial advisers that they were buying into a company that would pay 8% distributions and may one day go public to give them additional return. GPB Goes Downhill GPB private placements have not performed the way investors believed they would. In 2018, GPB stopped paying distributions to customers. In 2019, the FBI raided the company’s offices, class action lawsuits were filed, and the company reported that the value of its funds was down significantly.Scott Silver, Silver Law Group’s managing partner, was recently interviewed for an article on Investmentnews.com that details the alleged “hot air” spewed by brokers to sell $1.8 billion of GPB Capital Holdings to investors.

Silver Law Group represents investors in claims to recover GPB investment losses. If you have losses from investing in GPB, contact Silver Law Group for a no-cost consultation at (800) 975-4345 or at ssilver@silverlaw.com. Continue reading ›

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Silver Law Group and the Law Firm of David Chase have teamed up to file lawsuits on behalf of clients who were directed into fixed and variable annuities sold by Northstar Financial Services (Bermuda). Northstar is now in court-ordered liquidation proceedings after filing for Chapter 15 bankruptcy last year, unable to honor client surrender requests. Claims Filed Against Broker-Dealers Silver Law Group managing partner Scott Silver and David Chase are targeting the U.S.-based brokerage firms and financial management institutions that sold clients on the safety and reliability of Northstar’s fixed and variable rate annuity investment products when the risks were actually much higher due both to a lack of U.S. regulatory safeguards and the company’s history of mismanagement. A FINRA complaint filed April 12, 2021 against one of those brokerages, Truist Investment Service (Sun Trust), seeks damages for lack of due diligence; breach of fiduciary duty, and negligence and negligent misrepresentation, among other violations. The complaint outlines how Sun Trust and one of its brokers assured two retiree clients that their retirement savings, traditionally invested in money markets and CDs, would be equally safe in Northstar Financial Services (Bermuda) annuities while steadily earning a fixed yield.Silver Law Group and the Law Firm of David Chase have teamed up to file lawsuits on behalf of clients who were directed into fixed and variable annuities sold by Northstar Financial Services (Bermuda). Northstar is now in court-ordered liquidation proceedings after filing for Chapter 15 bankruptcy last year, unable to honor client surrender requests. Continue reading ›

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Silver Law Group has filed two FINRA arbitration claims to recover losses on behalf of Northstar Financial Services (Bermuda) investors who were recommended fixed and variable annuities. The arbitrations claims have been filed against the securities brokerage firms who recommended and solicited the Northstar Financial Services (Bermuda) investments to their customers. Northstar is now in court-ordered liquidation proceedings after filing for Chapter 15 bankruptcy last year, and is unable to honor client surrender requests. A FINRA complaint filed April 12, 2021 against one of the securities brokerage firms, Truist Investment Service (formerly known as SunTrust), seeks damages for lack of due diligence, breach of fiduciary duty, negligence and negligent misrepresentation. The complaint alleges that Sun Trust and one of its brokers misrepresented to two retiree clients that their retirement savings, traditionally invested in money markets and CDs, would be equally safe in Northstar Financial Services (Bermuda) annuities while steadily earning a fixed yield.Silver Law Group has filed two FINRA arbitration claims to recover losses on behalf of Northstar Financial Services (Bermuda) investors who were recommended fixed and variable annuities. The arbitration claims have been filed against the securities brokerage firms who recommended and solicited the Northstar Financial Services (Bermuda) investments to their customers. Continue reading ›

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Do you have a family member who is also your stockbroker, investment advisor, or other financial services representative? Many broker-dealer firms encourage newly-minted employees to recruit wealthy relatives to invest with them to begin their business and grow their client list. You may have taken the bait and moved your investments over, or may just be considering changing brokers to help them out. There isn’t anything wrong with doing this, of course, it’s your choice. In many ways, you should treat them as you would anyone you’re considering to invest your money, since it is your money that’s on the line. The goal is to ensure that your money will be in safe hands, and handled professionally, family or not.Do you have a family member who is also your stockbroker, investment advisor, or other financial services representative?

Many broker-dealer firms encourage newly-minted employees to recruit wealthy relatives to invest with them to begin their business and grow their client list. You may have taken the bait and moved your investments over, or may just be considering changing brokers to help them out. There isn’t anything wrong with doing this, of course, it’s your choice. Continue reading ›

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Broker-dealers under the Advisor Group (which includes SagePoint Financial, Royal Alliance Associates Inc., Triad, Woodbury Financial Services, and FSC Securities) have increased legal reserves by about $4.4 million compared to the prior year, according to SEC filings. According to an InvestmentNews article, Royal Alliance, SagePoint, and FSC increased their reserves by as much as three times the amount of the prior year. GPB Sales Cost Broker-Dealers The Advisor Group firms say they increased their reserves for “legal and regulatory matters”, but don’t say exactly what those matters are. One issue that may be costing the firms is the sale of GPB Capital Holdings private placements, which recently was charged with running a Ponzi-like scheme and had three of its senior executives arrested.Broker-dealers under the Advisor Group (which includes SagePoint Financial, Royal Alliance Associates Inc., Triad, Woodbury Financial Services, and FSC Securities) have increased legal reserves by about $4.4 million compared to the prior year, according to SEC filings. Continue reading ›

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With the Department of Justice’s recent indictment of GPB Capital Holding’s executives, David Gentile, Jeffry Schneider, and Jeffrey Lash, for securities fraud, wire fraud, and conspiracy, it’s abundantly clear that investment fraud is alive and well in the industry. In that case, it is estimated that broker-dealers sold GPB to over 2,000 investors, with losses of up to $1.8 billion. Although investors understand the risks associated with investing, they often aren’t aware of the many avenues available to them to recover their losses if they occurred due to negligence, misconduct, or fraud by financial advisors and stockbrokers. If this is you, here’s what you need to know to recoup your GPB investments. FINRA Mediation Or Arbitration One of the most common pathways to recoup an investment is through a FINRA mediation or arbitration. The Financial Industry Regulatory Authority (“FINRA”) is a government authorized non-profit designed to protect investors by overseeing and regulating U.S. broker-dealers. The government authorizes both the SEC and FINRA to take enforcement actions against broker-dealers who violate the law, including granting monetary awards to investors.With the Department of Justice’s recent indictment of GPB Capital Holding’s executives, David Gentile, Jeffry Schneider, and Jeffrey Lash, for securities fraud, wire fraud, and conspiracy, it’s abundantly clear that investment fraud is alive and well in the industry. Contact Silver Law Group to recover your GPB Losses. Continue reading ›

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According to FINRA Disciplinary actions for February 2021, the following individuals were suspended from FINRA for failing to comply with a FINRA arbitration award or settlement agreement pursuant to FINRA rules:

NAME FORMER EMPLOYERS
  Lawrence Fawcett, Jr.   Westpark Capital, Inc.
  Salomon Whitney Financial
  Lawrence Freedman   Newbridge Securities Corporation
  Wells Fargo Clearing Services, LLC
  Ganesh Iyer   Morgan Stanley
  LPL Financial LLC
  Carolyn Neale   AXA Advisors, LLC
  UVest Financial Services Group, Inc.
  Paul Stanford   Santander Securities LLC
  Ameriprise Financial Services, Inc.
  Nelson Torrens   LPL Financial LLC
  UBS Financial Services Inc
  Wesley Wallace   Worden Capital Management LLC
  JD Nicholas & Associates, Inc.
  Maurice Wilde   Newbridge Securities Corporation
  IFS Securities

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FINRA, the Financial Industry Regulatory Authority, is the U.S. broker-dealer industry’s most prominent self-regulatory organization, authorized by Congress to protect investors by ensuring that the broker-dealer industry operates fairly and honestly. However, despite overseeing more than 600,000 brokers across the country, FINRA’s jurisdiction does not include Vlad Tenev, the CEO of Robinhood, who is not registered or licensed with the organization. Robinhood has been hailed as one of the fastest-growing online brokerage firms in the world, but has been the subject of extreme scrutiny over the past several weeks due to its role in recent market activity related to GameStop, AMC Theatres, and others. Many Brokerage CEOs Are Not FINRA-Registered Unfortunately, Tenev’s lack of FINRA registration is not an exception, but the industry norm. Robinhood’s response to this revelation has been that Tenev is the CEO of the holding company for Robinhood’s brokerage service, not the broker-dealer itself, meaning Tenev is not required to be registered. Nonetheless, FINRA’s website states that “we require individuals and firms who wish to conduct business with the investing public to achieve and maintain certification as members of FINRA.” Tenev’s implication in recent events has led many to question whether Tenev, and individuals in similar positions at other firms, should be deemed individuals conducting business with the investing public.FINRA, the Financial Industry Regulatory Authority, is the U.S. broker-dealer industry’s most prominent self-regulatory organization, authorized by Congress to protect investors by ensuring that the broker-dealer industry operates fairly and honestly. However, despite overseeing more than 600,000 brokers across the country, FINRA’s jurisdiction does not include Vlad Tenev, the CEO of Robinhood, who is not registered or licensed with the organization. Continue reading ›

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On February 4, 2021, a federal indictment was unsealed against three GPB Capital insiders: David Gentile, Jeffry Schneider, and Jeffrey Lash. Gentile was the founder, owner, and CEO of GPB Capital, Schneider was the CEO of Ascendant Capital, the placement agent for GPB, and Lash was a managing partner of GPB Capital primarily responsible for overseeing GPB’s investments in car dealerships. GPB Capital is a New York-based alternative asset manager that raised over $1.8 billion dollars from investors across the United States.  GPB offered a series of limited partnership deals, including: GPB Holdings, LP; GPB Holdings II, LP; GPB Automotive Portfolio, LP; GPB Waste Management, LP, and GPB Cold Storage, LP.  GPB was sold by a vast network of brokerage firms who promised protection of principal investment, a steady dividend payment, and major upside if GPB went public. GPB’s funds have not paid any distributions since 2018, have substantially declined in principal value, and are illiquid, meaning investors are stuck in these funds with no way to sell and/or recoup their losses.On February 4, 2021, a federal indictment was unsealed against three GPB Capital insiders: David Gentile, Jeffry Schneider, and Jeffrey Lash. Gentile was the founder, owner, and CEO of GPB Capital, Schneider was the CEO of Ascendant Capital, the placement agent for GPB, and Lash was a managing partner of GPB Capital primarily responsible for overseeing GPB’s investments in car dealerships. Continue reading ›

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A FINRA arbitration panel has awarded customers of Arete Wealth Management $515,000 for investment losses in risky GPB Capital Holdings private placements. The award is notable because Arete was ordered to pay $259,000 in client legal fees, which is not typical in FINRA arbitration awards. Arete Wealth Management, a broker-dealer based in Chicago with 35 offices, is known to sell high-risk alternative investments. Silver Law Group filed a FINRA arbitration claim against Arete on behalf of an elderly client who we alleged was sold unsuitable leveraged ETNs, ETFs, and non-traded REITS. Among the investments that caused our client significant losses were: American Finance Trust, Hospitality Investors Trust, and Benefit Partners Realty Trust. GPB Capital Holdings FINRA arbitration claims have been piling up against GPB Capital Holdings, a New York-based alternative asset management firm that raised $1.8 billion since its founding in 2013 by Scientologist David Gentile.A FINRA arbitration panel has awarded customers of Arete Wealth Management $515,000 for investment losses in risky GPB Capital Holdings private placements. The award is notable because Arete was ordered to pay $259,000 in client legal fees, which is not typical in FINRA arbitration awards. Continue reading ›

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