Kalos Broker Overconcentrated IRA With GPB Investments

Investor Sues Kalos Capital Over GPB Capital Losses

A widower retiree in his eighties is suing Kalos Capital for losses he suffered in GPB Capital Holdings’ private placements and other risky investments that were recommended to him by Kalos broker, Jason Mosher.

The claimant contends that Mosher, who operates his business under the name Sheppard Mosher but is an employee of Kalos, overconcentrated his IRA in GPB investments and other risky securities including private Real Estate Investment Trusts (REITs) and privately traded securities. Now, this elderly investor is seeking up to $500K in damages.

GPB Capital Holdings, which invests in auto dealerships and waste management, is accused of operating a $1.5B Ponzi scam. The alternative asset firm remains under investigation by the US Securities and Exchange Commission (SEC), FINRA, other regulators, and the Federal Bureau of Investigation (FBI).

Meanwhile, at least 60 brokerage firms, including Kalos Capital, earned some $160M in commissions from selling GPB private placements to investors.

Our GPB investment fraud attorneys at Shepherd Smith Edwards and Kantas are representing this senior investor in his Financial Industry Regulatory Authority (FINRA) arbitration claim against Kalos Capital, and we are fighting to help him recover his losses. Kalos Capital is a subsidiary of Kalos Financial.

Retiree’s IRA Was Overconcentrated in Risky, Unsuitable Investments

The claimant said that he met Mosher, who is a New York-based registered representative, at a dinner seminar for seniors. He contends that the Kalos Capital broker promised him a low-risk investment strategy that would keep his money safe while providing income and a return of principal.

Yet Mosher then proceeded to employ an overly aggressive strategy that was improperly allocated and unsuitable for an older, conservative, and inexperienced investors.

Not only that, but this retiree’s portfolio was placed in private placements. A large position of which was in GPB Capital Holdings’ LP fund which is now essentially worthless. As well as other risky investments including privately traded REITs, and other untraded and unregistered products.

This claimant is making a number of allegations in his securities arbitration lawsuit, including:

Misrepresentations and omissions
Unsuitable investment recommendations
Overconcentration
Breach of fiduciary duty
Stockbroker Fraud
Negligence
Inadequate supervision
Breach of contract and warranties

It was Kalos Capital’s duty to properly supervise Jason Mosher and detect and prevent any negligence/fraud by the NY-based broker.

However, considering that Mosher isn’t the only Kalos broker to market and sell GPB private placements to investors, the broker-dealer appears to have encouraged its registered representatives to sell these risky investments to customers who have since sustained huge losses. Meanwhile, the firm and its registered representatives made money off the transactions through commissions and fees.

GPB Investor Fraud Lawyers

SSEK Law Firm is representing not only this investor but also other claimants’ in their GPB investor fraud claims against Kalos and several of its brokers, who are located around the United States.

We are also pursuing GPB private placement lawsuits against other broker-dealers including Ameriprise, Arkadios Capital, Triad Advisors, Pruco Securities, Arkadios Capital, International Assets Advisory, and others.