Securities fraud lawyers predict that the majority owners of Prime Automotive Group, GPB Capital HoldingsIt is in an “flood” Mediation cases brought against brokers who promoted risky investments unsuitable for the needs of retirees, and other inexperienced investors.
The following are some of the most effective ways to get started: GPB Capital lawsuits Hundreds of other cases are expected to be filed. This includes some investors in Maine and New England that were adversely affected by what was described as the “supposed Ponzi scheme” GPB Capital is a leading financial services company.
GPB Capital Lawsuits
In the Barasch and Kogan case, almost $1.5 Million in savings and trusts assets have been retired at GPB Capital. The company is under investigation by federal and state authorities.
GPB Capital recently made headlines for firing former Prime Automotive Chief Executive Officer David Rosenberg. This was just two weeks after Rosenberg had filed a suit claiming the investment company runs a Ponzi Scheme using new investment funds to cover returns from existing investors. GPB Capital denied that its decision to terminate Rosenberg had anything to do with the lawsuit, but refused to give any details about his firing.
Jason Haselkorn, Partner at Haselkorn & Thibaut said the following, “We are receiving a number of calls from investors that were sold GPB funds based on some material representations that were not accurate, or which omitted significant details for investors to consider.” Investors are now concerned that their capital invested in GPB Funds (as also the income stream they anticipated from this investment) is at risk.
You can also find out more about the following: investment fraud lawyers at the Haselkorn & Thibaut, P.A. The law firm is currently investigating a variety of claims against financial advisers and broker-dealer The firms selling GPB Funds. Investors who have information about broker-dealer or financial adviser recommendations for transactions in GPB Funds are encouraged to contact them at (888) 628-5900. website.
Rosenberg has made several accusations, including that GPB Capital inflated the securities The commissions were inflated, and the false contracts generated and the deals made benefited the heads and not the investors.
The Rosenberg lawsuit was triggered when GPB Capital On July 1, the company failed to cover $5.9 million in its purchase of Rosenberg’s share of a fund supporting the purchase by dozens car dealers.
GPB Capital Investigations
Prime Automotive is composed of 56 dealerships, organized into five regional groups across eight countries. This includes nine dealerships located in Maine.
The complaints allege that brokers were lured to GPB Capital by its high commissions compared to the industry standard to push inappropriately risky investments into GPB Capital for their customers. This is in violation of FINRA’s rules on suitability of investments, and conflicts.
FINRA The rules state that stockbrokers cannot be a broker “must have a reasonable basis to believe” They must ensure that the securities or commercial strategy they suggest is appropriate for their client. The principle of suitability dictates, in general, that older investors and those with a low tolerance for risk shouldn’t sell high-risk investments.
FINRA has a number of rules that prohibit agents from selling certain investments to gain personal profit, even if they are not suitable or should not be recommended to clients. “misstatements or misleading omissions of material facts, and fraudulent or manipulative acts and practices. “
GPB Capital spokesperson Nancy Sterling told reporters in a recent statement that mediation cases are not brought against the investment company. Instead, they are only filed against brokers who have sold shares of GPB Capital’s investment funds.
These are not acts of violence against women GPB CapitalSterling added that independent stockbrokers, who were not affiliated with GBP Capital, should be targeted. “GPB Capital is a registered investment advisor (US Securities and Exchange Commission) And, as such, it is not subject to the supervision of, nor is it governed by (FINRA). The only avalanche we have seen is that the number of press releases of the law of plaintiffs companies that are trying to ask customers for claims against brokers. “
GPB Capital has been investigated Authorities from the state and federal government have been looking into possible violations of securities law for several month. Automotive News reported in April that the FBI registered the offices for the investment firm with a New York agency at the end of February.