Retirees File Fraud Claim Over GPB Capital & REIT Losses

Triad Advisors and its Ex-Florida-Based Broker Placed Claimants Funds In Too Risky GPB Capital & REIT Investments

Two Utah retirees have filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Triad Advisors, Inc. over losses they suffered from investing in GPB private placements and privately traded real estate investment trusts (REITs), including American Realty Capital Trust. Now they are seeking up to $500K in damages.

The couple worked with former Triad Advisors broker Michael Payne, who is now a broker with Proequities, Inc. in Longwood, Florida. He also is a financial representative with Payne Financial Group in Winter Springs, Florida.

Our broker fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are representing these claimants in their FINRA arbitration claim against Triad Advisors. This is one of a number of cases we’ve filed against broker-dealers on behalf of investors who lost money in GPB private placement funds.

Triad Advisors & Broker Michael Payne Made Misrepresentations & Unsuitable Recommendations

The claimants, who are inexperienced investors, entrusted Triad Advisors and Michael Payne with their liquid savings. Payne and Payne Financial Group claimed that they were experts and could offer income strategies that wouldn’t expose the couple to unnecessary risks.

Payne and Triad Advisors promised to help the Utah couple earn income and a return of principal. Instead, they placed the older investors’ funds in highly risky investments including private placements such as the GPB Holdings LP, REITs such as American Realty Capital Trust, which also appears to be in financial trouble—and other privately traded equities.

GPB Capital Holdings, in the wake of the Ponzi scam allegations, is the defendant in a number of lawsuits. It remains under investigation by the various regulatory bodies including the Securities and Exchange Commission (SEC), FINRA, and the Federal Bureau of Investigation (FBI).

Dozens of broker-dealers, including Triad Advisors, enriched themselves via commissions from selling GPB private placements to customers. Meanwhile, GPB investors have likely lost all of the funds that they placed in these investments, including this couple whose $100K investment in GPB Holdings, LP is now probably worthless.

Triad Advisors and Payne should never have invested the retirees’ funds in REITs or private placements, which are known for being risky and unsuitable for unsophisticated investors looking for stability and income.

What Are the Allegations Being Put Forward By the Claimants?

In their GPB investor fraud claim, the Utah retirees are alleging:

Misrepresentations and omissions
Due diligence failures
Unsuitable recommendations
Gross lack of supervision
Breach of contract
Violation of state securities laws
Vicarious liability

Inadequate Supervision by Triad Advisors

Triad Advisors was grossly negligent in its supervision of Payne and his Group, which were self-supervised. Had there been a reasonable supervisor in place, it is unlikely that this couple’s portfolio would have been overconcentrated in such risky investments.

During his 24 years in the industry, Michael Payne has worked at other financial firms before Proequities and Triad Advisors, where he was registered from 2005 to 2018. These other firms have included Barr Financial Services, SWS Financial Services, Cuna Brokerage Services, WM Financial Services, Nationsbanc Investments, Barnett Investments, Metropolitan Life Insurance Company, Metlife Securities, and Chatfield Dean & Co.

Experienced Securities Fraud Lawyers Representing Retirees

Unfortunately, too many retirees and inexperienced investors were unsuitably invested in GPB Capital Holdings and other risky investments at the recommendation of their broker and broker-dealer.

At SSEK Law Firm, our investment fraud attorneys have made it our mission to help those who lost money in this Ponzi scam to recoup their losses from the firms who exposed them to these fraudulent private placements. Call (800) 259-9010 today to request your free, no-obligation case consultation.