Daryl Serizawa Investigated Over GPB Capital Private Placements

Woodbury Financial Services Representative Accused Of GPB Private Placements Sales

If you are an investor who was sold GPB Capital private placements by Woodbury Financial Services broker Daryl Serizawa, our broker fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) want to talk to you.

Serizawa is one of the hundreds of financial representatives who sold GPB funds to customers. These brokers and their firms earned more than $160M in commissions. Now, GPB Capital Holdings, an alternative asset firm that invests in auto dealers and waste management, is accused of operating a $1.8B Ponzi scam.

Serizawa’s BrokerCheck Record

According to Serizawa’s BrokerCheck record, he has worked in the securities industry for 26 years. He’s been a Woodbury Financial broker since 2017.

Previous to that, Serizawa had been a registered broker at nine other firms including Independent Financial Group, LPL Financial, Pacific West Securities, UBS PaineWebber, Smith Barney, Wachovia Securities, Chatfield Dean & Co., and two other broker-dealers.

There are currently two customer disputes on Serizawa’s record. One alleges excessive bond sales while he was a Wachovia broker. The second one, brought by the same former client who also worked with Serizawa when he was a UBS stockbroker, alleges breach of fiduciary duty and accuses him of trading to make additional commissions. The customer’s earlier investor fraud claim was settled while the latter was denied.

GPB Investors Fight To Recover Their Money

Already, SSEK Law Firm has filed a number of GPB investor fraud claims against several brokers and their brokerage firms including Arkadios Capital, Ameriprise and Kalos Capital. A few of these cases are expected to go before FINRA arbitrators this Spring.

Over the last year, the GPB Funds have plunged in value and there are growing concerns that these funds may now be worthless. Regardless, GPB investors have no way of knowing what their private placements are worth.

Redemptions were suspended in late 2019 and audited financial statements have not been delivered to regulators and shareholders in years. Meanwhile, fraud allegations and other troubles continue to plague GPB Capital. These include ongoing investigations by the US SEC, FINRA, certain state regulators and the FBI.

In November, an investor filed a class action securities fraud case against GPB, its lead underwriters, several individuals and other entities alleging a complex scam that involved many players.

Former GPB Partners Sue

There are also the lawsuits brought by two former GPB Capital business partners. One of the ex-partners, former Prime Automotive CEO David Rosenberg, was fired by GPB. He wants his job back.

Rosenberg claims that the company terminated his employment because he sought to expose GPB’s allegedly fraudulent actions. He contends that a number of car manufacturers, including Volkswagen and Toyota, are threatening to take back franchise deals with several Prime Automotive dealerships over alleged contract breaches related to his ousting.

Last week, GPB announced that Todd Skelton, former AutoNation CEO, is the new Prime Automotive CEO. In October, former GPB CCO Michael Cohn was charged in criminal court with obstruction of justice.

GPB Investor’s Allege Misrepresentations, Omissions and Inadequate Supervision

There is mounting evidence that brokerage firms and their brokers had become aware that the GPB funds were not good investments. Yet, high commissions purportedly drove them to continue marketing and selling these private placements to customers even when they were unsuitable and often without ever fully apprising them of the risks.

GPB Ponzi Fraud Law Firm

If you are a GPB investor who worked with Woodbury Financial Services stockbroker, Daryl Serizawa or another registered representative from any other firm, get in touch with SSEK Law Firm today and ask for your free, no-obligation consultation.

Our firm is also currently speaking to customers of other Woodbridge representatives that sold GPB Capital private placements, including barred stockbroker, Robert Hayes Hoffman.