Articles Posted in Securities Fraud

Financial Advisor’s Due Diligence On GPB Capital Holdings

March 13, 2019 | Silver Law Group

Questions have been raised about financial advisor's due diligence related to GPB Capital Holdings' private pacements and Five Star Carting. GPB Capital Holdings is being investigated by the state of Massachusetts, FINRA, the SEC, the New Jersey Bureau of Securities, and the FBI. If that weren’t enough, the New York City Business Integrity Commission, which oversees the city’s private trash industry, is also investigating the company.

The company says it buys “income-producing private companies” with the money it raises by having financial advisers sell private placements to investors. A private placement is a way to raise funding by selling securities to investors in a private, rather than a public, offering. Private placements involve significant risk, are illiquid, and are not suitable for many investors’ goals. Continue reading ›

FBI Now Investigating GPB Capital Holdings

March 8, 2019 | Silver Law Group

The FBI is now investigating GBP Capital Holdings. The state of Massachussetts, the SEC, and FINRA are also investigating. In February, we told you about three investigations focused on GPB Capital Holdings. The first is by the state of Massachusetts, with two additional separate investigations by FINRA and the SEC. On Thursday, February 28^th, the FBI, accompanied by officials from the New York City Business Integrity Commission, paid an impromptu visit to GPB’s corporate headquarters.

The announcement was made in a letter sent to investors, explaining that “authorities” made an unannounced visit to their offices, and “collected materials.” While the company did not disclose the identity of the “authorities,” an anonymous industry insider disclosed to the press that the visit was from the FBI and the Commission. Continue reading ›

Massachusetts Questions Fidelity’s Fees

March 8, 2019 | Silver Law Group

The state of Massachusetts is looking into the "infrastructure fees" Fidelity charges for using its platform for 401(k) plans. This follows a lawsuit by an investor in T-Mobile's 401(k) plan that claims Fidelity's fees are concealed. The US Labor Department is also investigating. If you use Fidelity’s platform for your 401(k) investments, you may have some additional, unfamiliar fees to pay. You wouldn’t be the only one—others have noticed, and now the State of Massachusetts has launched an inquiry into Fidelity’s fees. The fees are being charged to some mutual funds for using their platform for access to its retirement plan customers.

The securities division of the Massachusetts Secretary of the Commonwealth sent a letter on February 27^th to Fidelity to ask about what’s called “infrastructure fees.” The letter follows a lawsuit by an investor in T-Mobile USA’s 401(k) plan that claims Fidelity conceals these fees. The US Labor Department is also investigating the fees. Continue reading ›

Ex-lawmaker Convicted of Stealing $3 million From Widows

February 21, 2019 | Silver Law Group

Why-South-Florida-is-a-Target-for-Ponzi-Schemers-300x200 A securities agent and former state legislator, Robert Kenneth Lindell, is found guilty on 15 counts of securities fraud, intentional evasion of income tax, and failure to pay Maine income tax, in what authorities call one of Maine’s worst cases of elder financial abuse. He defrauded two widows out of more than $3 million.

“Mr. Lindell was a trusted financial professional in Maine,” said Judith Shaw, the Maine securities administrator. “But more than that, he was like family to these women. He groomed them for years in order to perpetrate these crimes, preying on their trusting nature and vulnerabilities.” Continue reading ›