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Shepherd, Smith, Edwards & Kantas Files GPB Capital Claim Against Arkadios

1117 Days ago

HOUSTON, April 30, 2019 (GLOBE NEWSWIRE) -- Lawyers with Shepherd, Smith, Edwards & Kantas, LLP (SSEK Law Firm) have filed a case through the Financial Industry Regulatory Authority (FINRA) against Arkadios Capital and one of its brokers on behalf of an investor who has sustained investment losses as a result of relying on her investment advisor’s recommendation to invest in GPB Capital Holdings, LLC.  GPB Capital is at the epicenter of several current, on-going investigations by various state and federal investigators, along with the FBI, over allegations of questionable accounting and sales practices as well as inaccurate disclosures to investors. 

GPB Capital is an alternative asset management firm that was formed in 2013 and, according to InvestmentNews, “raised $1.8 billion from accredited investors through private placement funds, which invest in auto dealerships and the waste management industry.”  Brokers who sold these private placements are claimed to have earned over $100M in commissions from these transactions.  However, investors in these products have suffered investment losses due to their investment in GPB private placements which were marketed as a “relatively safe investment” with “minimal risks”.  In August 2018, GPB Capital announced that it was suspending the sale of its private placements to conduct an internal accounting review.  GPB Capital suspended all redemptions of its funds and its auditors resigned in November 2018.

GPB-branded private placements were sold to investors by financial advisors associated with numerous independent broker-dealers, and questions have arisen surrounding the amount of due diligence, or lack thereof, performed by these firms when they agreed to sell these investments to their clients.  Brokerage firms, and their registered representatives, have an obligation to exercise due diligence when making investment recommendations to clients. 

If you invested in any GPB-related private placements through Arkadios or any other broker-dealer and suffered losses, please contact the law firm of Shepherd, Smith, Edwards & Kantas, LLP today for a free, confidential evaluation of your investments and legal options.  We have a team of attorneys, consultants, and staff with over 100 years of combined experience in the securities industry and in securities law that are ready to assist you in recovering your investment losses today.

Contact:  800-259-9010
Sam Edwards:  sedwards@sseklaw.com
Ryan Cook:  rcook@sseklaw.com

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