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SCOTTSDALE, Ariz., July 24, 2019 (GLOBE NEWSWIRE) -- Shepherd, Smith, Edwards & Kantas, LLP (“SSEK Law Firm”) has been investigating GPB Capital for more than a year. The investigation was triggered in April 2018 when GPB Capital first missed important filing deadlines with the SEC. Since that time, more information has come to light that suggests GPB may have been a Ponzi Scheme. On information and belief, GPB was paying investors either from their own initial investments or from money acquired from new investors.
It appears certain Investment Firms and Investment Advisors marketed GPB to clients wanting relatively conservative investments. GPB paid large commissions to financial advisors, sometimes between 7% and 10%; industry standard is 5% or less. One of those firms is Redstone Capital Management. According to Redstone’s website, the firm’s founder and Managing Director is Kevin Canterbury. FINRA records indicate Canterbury is licensed through Coastal Equities, Inc. Interestingly, both Redstone and Coastal list the same address: 7231 E. Princess Blvd, Scottsdale, AZ. It is unclear what Coastal/Redstone received for its marketing efforts on GPB.
Private placement investments are less liquid than publicly traded investments and are generally considered riskier than publicly traded fixed income investments. GPB is considered a Private Placement. Industry standards dictate that an investor should not be concentrated in these types of investments. Simply being an accredited investor does not make it acceptable to market such investments to investors with a conservative bent. This is especially true if the investor had a large portion of their liquid assets in GPB.
SSEK Law Firm has been receiving calls from many GPB investors from across the country for over a year. Smaller firms such as Coastal (Redstone) may not survive an onslaught of cases, making it prudent to seek counsel early on. If you are a GPB investor, contact SSEK Law Firm for a free, confidential evaluation of your situation and to learn your options. We have a team of attorneys, consultants and staff with more than 100 years of combined experience in the securities industry and in securities law. The firm itself has been around for more than 30 years. Always ask any potential counsel how long their firm has been around.