The law firm of Oakes & Fosher is presently investigating the possible misconduct of securities broker Darren Kubiak. According to his publicly available FINRA BrokerCheck report, Darren Kubiak has been the subject of multiple customer disputes over the course of his career.
Darren Kubiak is presently operating as a Georgia based securities broker. He has worked in the securities industry for twenty-nine years. During his career, he has been registered with seven different securities firms.
- First Investors Corporation (1984-1991)
- Hornor, Townsend & Kent (1991-1998)
- Washington Square Securities (1998-1999)
- Signator Investors (2005)
- USAllianz Securities (2005-2006)
- Questar Capital Corporation (2006-2007)
- Kalos Capital (2007-Present)
- In June 2019, customers alleged that Darren Kubiak recommended to them that they invest about $170,000 in GPB Funds. The customers claimed that these placements were highly unsuitable given their previously stated investment objectives. This case is currently pending. The customers are seeking $500,000 in damages.
- In July 2019, a customer alleged that Darren Kubiak recommended unsuitable securities. This case is currently pending. The customers are seeking $495,368 in damages.
What Does This Mean?
GPB Capital Funds were what are known as a private placements. These are privately traded securities that are not sold on any public securities exchanges and are not registered with the Securities and Exchange Commission. Because of this, there is a distinct lack of transparency when dealing in these products. Securities brokers like Darren Kubiak will exploit this by misrepresenting private placements as safe and low risk to unsuspecting investors. In reality, nothing could be further from the truth. Private placements are speculative and illiquid products and GPB Capital Funds were no different.
It was also revealed by one of the parent company’s former partners that GPB Capital Funds operated as a massive Ponzi scheme. A Ponzi scheme is a fraudulent investment practice in which a broker, or group of brokers, solicit funds from investors earmarked for a specific investment. However, instead of investing the funds as they claimed they would, the perpetrating party diverts them. The perpetrating party then provides the investors with falsified information to simulate actual growth. However, since no growth is actually taking place, the broker, or brokers, can only pay their investor dividends by soliciting funds from new rounds of investors. This continues until the entire operation collapses.
Oakes & Fosher Can Help
Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.
Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Darren Kubiak, or with any of the GPB Capital Funds, please contact Oakes & Fosher for a free and private consultation.