Over the last 12 years, Oakes & Fosher has tried and won more FINRA arbitration cases on behalf of individual investors than any other law firm in the country.

*Past results do not guarantee a similar outcome. The choice of a lawyer is an important decision and should not be based alone on prior results.

GPB Capital Holdings News: What You Need to Know - Oakes & Fosher

AIG Advisor independent broker-dealers, Royal Alliance, FSC Corporation, SagePoint Financial, and Woodbury Financial Services recently sanctioned for sales of alternative investments in GPB Capital Holdings.

The Financial Industry Regulatory Authority (FINRA) recently fined Royal Alliance, FSC Corporation, SafePoint Financial, and Woodbury Financial Services, ordering them to pay partial restitution to customers investing in units of GPB Capital Holdings. This GPB Capital Holdings news arises from a consent agreement, where the FINRA notes that:

“Between May 4, 2018, and June 29, 2018, FSC Securities, Royal Alliance, SagePoint Financial, and Woodbury Financial negligently failed to tell investors in an offering related to GPB Capital Holdings, LLC (GPB Capital) that the issuer failed to timely make required filings with the Securities and Exchange Commission, including filing audited financial statements.”

As a result, each firm violated FINRA Rule 2010.

Latest GPB Capital Holdings News Reveals Lack of Disclosure

The FINRA’s findings arose from GPB Capital informing the AIG Advisor Group firms that the financial statements for one of its units, GPB Automotive, would be delayed pending “forensic accounting.” Although potential investors have the right to know this information, according to the consent order, FINRA alleges that these firms did not disclose the material facts regarding the product.

A Stockbroker’s Duty

Stockbrokers have a duty to act in your best interest, and that includes disclosing all material facts to potential buyers of any recommended security. The alternative investments from GPB Capital Holdings are high-cost, high-risk, and illiquid products. Failing to disclose an additional risk is unacceptable

Alternative Investments Defined

Most investment products are available on public securities exchanges. These publicly traded investments add liquidity to client portfolios and allow easier regulation and proper pricing. However, some securities aren’t publicly traded and therefore don’t have any available guaranteed redemption pricing.

Alternative investments are referred to as “private” or “non-traded” and are often recommended to investors. Stockbrokers and firms must relay all information regarding an investment product – especially when it’s non-traded. With little regulation or guaranteed pricing, these investments are highly illiquid and can cause serious losses to unknowing investors.

Registering With the SEC

Most alternative investments are registered with the SEC, which means they’re required to provide a summary to investors. This document outlines the product offering and how the funds should be used.

However, the recent GPB Capital Holdings news reveals that firms and brokers failed to tell investors GPB Capital didn’t register the specific product with the SEC in a timely manner. As a result, they did not provide the required financial summary and investors remained in the dark.

Oakes & Fosher is Here to Help

If you or someone you know purchased any units or shares in GPB Capital Holdings or GPB Automotive Group, please get in touch with Oakes & Fosher for a no-cost consultation. The recent GPB Capital Holdings news may mean you’ve suffered losses.

We handle all cases on a contingency fee basis, meaning you don’t pay legal fees if we don’t recover for you. Oakes & Fosher handles matters related to the recent GPB Capital Holdings news on a national level. Please use the link to the right of this blog or the button below to contact us immediately.