Stoltmann Law Offices Announces the Filing of a FINRA Claim In Connection with GPB Capital Holdings

CHICAGO, Nov. 13, 2019 /PRNewswire/ -- The nationwide securities fraud attorneys at Stoltmann Law Offices, P.C. (www.stoltmannlaw.com) filed a Statement of Claim with FINRA Dispute Resolution, on behalf of an investor who was solicited by her Financial Advisor to invest her IRA money in the GPB Automotive Fund, L.P.  The claim includes allegations that the brokerage firm failed to 1) perform adequate due diligence in the GPB Automotive Fund and ignored red flags about the offering so that the firm could pocket its 10% commission for selling the investment; 2) that the financial advisor and firm ignored the investor's objectives, risk tolerance, and financial acumen in concentrating approximately 90% of her retirement account in the GPB Automotive Fund; 3) that the brokerage firm failed to adequately supervise the conduct of this financial advisor, who had upwards of twenty customer complaints on his record prior to the solicitations at issue; and 4) that these investments were sold to our client based on fundamental misrepresentations and omissions in violation of both state securities and consumer protection statutes.  

Stoltmann Law Offices attorney Joe Wojciechowski stated about this claim that "Brokerage firms have an iron-clad responsibility, rooted in FINRA Rule 2111, the 'suitability rule,' to perform due diligence on a private placement like GPB Automotive Fund.  This is a gatekeeper function designed to ensure a private placement is suitable for at least some investors.  Our investigation reveals that brokerage firms regularly 'check the boxes' in the due diligence process because of the conflict of interest between the firm and their clients: if the firm rejects the offering, they can't collect their 10% commission." 

The GPB Capital funds have been the subject of a cascading array of bad news over the past several months. Just recently, a class action complaint laid bare the internal fraud at GPB.  Over $1.5 billion was raised from investors via private offerings through a network of retail brokerage firms including D.A. Noyes, FSC Securities, Cetera Advisors, Royal Alliance, and many others.  

If you were sold investments in any of the GPB Capital funds by your financial advisor and wish to know your legal options, please call 312-332-4200 for a no obligation free consultation with an attorney. Stoltmann Law Offices is a Chicago-based contingency fee firm which means we do not get paid until you do.

SOURCE Stoltmann Law Offices

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