The Financial Industry Regulatory Authority (FINRA) has issued a $1.3 million fine against four Advisor Group firms, FSC Securities, Royal Alliance Associates, SagePoint Financial, and Woodbury Financial Services, for selling private placements issued by GPB Capital Holdings.
Advisor Group neglected to inform investors that GPB had failed to timely submit its required filings with the Securities and Exchange Commission (SEC) in 2018, including audited financial statements, according to FINRA. The GPB fund that failed to file its 2018 audited financial statements was the $600 million GPB Automotive Portfolio limited partnership, according to FINRA.
FINRA further alleges that advisors at each of the four Advisor Group firms sold a total of $16.3 million in private placements, which generated nearly $1.14 million in commissions, even after the firms knew about GPB’s failure to make its required filings. Each of the four Advisor Group firms agreed to the penalty, which includes $200,000 in total fines and $1.1 million in restitution, without admitting or denying any of FINRA’s investigatory findings.
Did your broker recommend GPB investments such as GPB Waste, GPB Automotive Portfolio, GPB Holdings II, GWG-Issued L Bonds or other investments such as non-traded REITS without explaining the risks? If so, you have a right to file a FINRA Securities Claim.
For a free case evaluation, email attorney Mark A. Tepper at askmark@marktepper.com, telephone him at 954-961-0096. Remember, you have a limited time to file an investment loss recovery claim.
About Mark A. Tepper, P.A.
Attorney Mark A. Tepper has earned the reputation of “Investor Advocate” while practicing law for over 40 years representing individual investors. FINRA arbitrators have upheld stockbroker fraud Claims filed by Mr. Tepper against many brokerage firms. A member of the Florida, New York and California Bars, Mr. Tepper is peer-reviewed for 21 consecutive years as AV PREEMINENT® for ethical standards and legal ability. It’s the highest rating of lawyers in the Martindale-Hubbell Law Directory.
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