Investor Lawyers Blog

Shepherd Smith Edwards and Kantas Pursues GPB Capital Investor Fraud Claim Against Kalos Capital, Ameriprise Financial and Ex-Broker Gary Imel

Published on: November 20, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Our investment fraud lawyers at Sheperd Smith Edwards and Kantas, LLP (SSEK Law Firm) represent a number of investors who have suffered losses from investing in GPB private placements that were sold to them by brokerage firms and their brokers.

Kalos Capital and Ameriprise Financial (AMP) are of these broker-dealers. Our broker fraud attorneys have filed a brokerage firm misconduct claim against them on our client’s behalf. This is not our first GPB investor fraud claim involving Kalos Capital.

GPB Investor Fraud Claim: Kalos Capital, Ameriprise Financial & Ex-Broker Gary Imel Investigated

Shepherd Smith Edwards & Kantas Investigates Cetera Investment Services and Mengxuan Zhang

Published on: November 19, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Shepherd, Smith, Edwards & Kantas (“SSEK”), a national law firm specializing in representing wronged investors, is looking into allegations against Mengxuan Zhang, previously employed by Cetera Investment Services out of Pasadena, CA. According to allegations, Ms. Zhang allegedly falsified customer signature pages on new account forms for some customers of Cetera. This included reusing signature pages without express permission and changing the dates on the forms so as to appear that customers had re-executed. One of the forms in question was an “illiquid investment acknowledgment form.” This is the type of form an investor in such products as GPB Capital or NorthStar Healthcare REIT would have to sign. After admitting her wrongdoing to Cetera, Ms. Zhang was officially discharged. She is currently not employed by any Broker Dealer as a financial advisor.

For her actions, Ms. Zhang has been suspended as a stockbroker/advisor by The Financial Industry Regulatory Authority Inc. (FINRA). She was also fined. Ms. Zhang accepted and consented to the findings by FINRA without admitting or denying the findings. According to FINRA, such actions on the part of Ms. Zhang violate FINRA Rule 2010. According to that Rule, a stockbroker/advisor must “….observe high standards of commercial honor and just and equitable principles of trade.” Under the terms with FINRA, Ms. Zhang may not make any statement publicly which denies FINRA’s findings regardless of the fact that she never specifically denied the allegations.

Financial Advisor Fraud Attorneys

Shepherd Smith Edwards and Kantas Investigates Investor Claims Involving Capital Financial Investments and Ex- Broker Sean Kelly

Published on: November 18, 2019 | by Shepherd Smith Edwards & Kantas, LLP

SSEK Investigates Capital Financial Investments And Ex-Broker Sean Kelly Over Investor Claims

At the heart of recent investor claims against Capital Financial are allegations against one of its ex-brokers, Sean Kelly.

Sean Kelly was accused last year by the US Securities and Exchange Commission (SEC) of defrauding a dozen investors. These investors, including senior retirees, were defrauded of over $1M through three of his companies, including Lion’s Share and Associates, that is based out of Georgia.

Kalos Financial Sends Letter to Investor Defending Its Sale of GPB Private Placements

Published on: November 14, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Kalos Financial Defends Its Sale Of GPB Private Placements

In a letter issued to investors on November 4th, Kalos Financial President, Larry Lyons, reported that its due diligence team recently met with senior GPB Capital Holdings executives including CEO, David Gentile.

The brokerage firm is one of dozens of broker-dealers under fire for selling GPB private placements that were issued by the asset management company, which has since been accused of operating a $1.8B Ponzi fraud.

Hong Kong Fines UBS Group $51M For Overcharging Clients

Published on: November 13, 2019 | by Shepherd Smith Edwards & Kantas, LLP

UBS Group Fined $51M By Hong Kong Securities Regulator

The Hong Kong Securities and Futures Commission (SFC) is ordering UBS Group AG (UBS) to pay a $51M fine for overcharging clients between 2008 and 2017. It is also ordering the Swiss banking giant to pay more than $25M in compensation to customers that were harmed.

According to the Hong Kong regulator, about 5,000 clients paid more than they should have in approximately 28,700 transactions. This happened after UBS advisors and assistants added padding to spreads involving bonds, as well as structured note trades and charging extra fees. UBS Group is accused of not disclosing to clients that they were paying these fees.

Shepherd Smith Edwards and Kantas Investigates GPB Investor Claims Against Ladenburg Thalmann’s Triad Advisors

Published on: November 12, 2019 | by Shepherd Smith Edwards & Kantas, LLP

SSEK Investigating Ladenburg Thalmann & Triad Advisors Over GPB Capital Investor Claims

In its quarterly report to the US Securities and Exchange Commission (SEC), Ladenburg Thalmann Financial Services notes that one of its brokerage firms, Triad Advisors, is the subject of six Financial Industry Regulatory Advisory (FINRA) arbitration complaints by customers seeking $1.65M in damages after the firm’s brokers sold them GPB private placements.

GPB Capital Holdings is accused of operating a $1.8B Ponzi scam. Many investors are claiming massive losses in the wake of the various GPB funds plunging in value, the suspension of investor redemptions, and the regulatory and criminal probes swirling around the alternative asset firm.

New Class Action Against GPB Capital Offers New Details Into Alleged $1.8B Ponzi Scam

Published on: November 8, 2019 | by Shepherd Smith Edwards & Kantas, LLP

New Class Action Offers Details Into Alleged GPB Ponzi Scam

This week in Austin, Texas, another proposed class securities case was filed on behalf of investors of GPB Capital Holdings and its many funds. This latest investor lawsuit directly accuses the alternative asset firm and its executives of running an alleged $1.8B Ponzi scam and provides new details into the fraud.

Filed in the US District Court for the Western District of Texas by the lead plaintiff and GPB investor Millicent Barasch, the class action securities fraud case was announced at a press conference. Toni Caiazzo Neff, an ex-Financial Industry Regulatory Authority (FINRA) examiner, spoke about how she’d previously tried to blow the whistle on GPB Capital Holdings.

Shepherd Smith Edwards and Kantas Investigates Customer Claims Involving First Standard Financial and Brokers Philip J. Sparacino and Gabriel Block

Published on: November 7, 2019 | by Shepherd Smith Edwards & Kantas, LLP

The New Jersey Bureau of Securities has revoked the registration license of First Standard Financial Company, a broker-dealer based in Red Bank, NJ. The move comes in the wake of allegations that First Standard and its representatives engaged in improper short-term trading, causing them to illegally make over $28.7M in sales charges and commissions.

Meantime, there have reportedly been an increase in customer complaints and a “mass exodus” of First Standard representatives from the firm. The state’s securities regulator is accusing the brokerage firm of “pervasive unauthorized, unsuitable, and excessive trading” that cost customers money while “unjustly enriching First Standard and its agents.”

Our brokerage firm misconduct lawyers at Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) are investigating claims of current and former customers of First Standard Financial Company and its brokers, including former licensed agents Philip Sparacino and Gabriel Block. Please contact us today so that we can help you explore your legal options.

9th Circuit Strikes Down JP Morgan Securities’ Wrongful Termination Win

Published on: November 6, 2019 | by Shepherd Smith Edwards & Kantas, LLP

A Ninth Circuit panel has struck down JP Morgan Securities’ arbitration win in a wrongful termination case brought by one of its former financial analysts. The appeals court found that the Financial Industry Regulatory Authority (FINRA) panel acted unreasonably when it refused to delay the rest of the arbitration proceedings after the firm’s ex-financial analyst, Bradley Sayre, and his lawyer both had medical emergencies.

Sayre couldn’t make part of the proceedings because his wife had a baby. Not only that, but his attorney wasn’t able to be present for all of the hearing after suffering a stroke.

Sayre asked for a continuance, but the FINRA panel denied his request, deciding that it could make an impartial ruling even without his presence or that of his lawyer. The arbitration panel ruled in favor of the financial firm.

Morgan Stanley Pays $182K to Clients of Ex-Broker Justin Amaral

Published on: November 5, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Morgan Stanley Ordered To Pay Over $300K In Fines And Restitution

Secretary of the Commonwealth of Massachusetts, William Galvin, is ordering Morgan Stanley (MS) to pay a $200K fine, as well as $182K in restitution to four customers who suffered losses while working with former broker Justin E. Amaral.

The ex-Morgan Stanley financial advisor was barred by the Financial Industry Regulatory Authority (FINRA) in 2015.