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GPB Private Placements- 80 Broker-Dealers Reportedly Authorized to Sell

As we previously reported, the U.S. Securities and Exchange Commission (“SEC”), Financial Industry Regulatory Authority (known as “FINRA”), the FBI, and the State of Massachusetts are investigating GPB Capital Holdings LLC (“GPB”) in probes reportedly concerning the accuracy of GPB’s disclosures of financial information to their investors.  GPB, a New York asset management firm, focused on private placement investments, has reportedly been under investigation by Massachusetts since September 2018.

Building Demolished

According to public documents filed with the SEC, there are approximately 80 broker-dealers that may have sold, or were authorized to sell investments for GPB.  As registered broker-dealers, any firms who actually sold GPB securities were required to conduct adequate due diligence in investigating potential investments and also to ensure their clients understood the risks associated with any GPB potential investment.

The broker-dealers who appear in the SEC filings for GPB offerings are listed below.  It is important to note that none of these broker-dealers has been found to have engaged in any wrongdoing.

  • Accelerated Capital Group
  • Advisory Group Equity Services, Ltd
  • Aegis Capital Corp
  • Aeon Capital, Inc.
  • American Capital Partners, LLC
  • Arete Wealth Management, LLC
  • Arkadios Capital
  • Ascendant Alternative Strategies, LLC
  • Ausdal Financial Partners, Inc.
  • Avere Financial Group, LLC
  • Axiom Capital Management, Inc.
  • BCG Securities, Inc.
  • Benjamin & Jerold Brokerage I, LLC
  • Cabot Lodge Securities, LLC
  • Calton & Associates, Inc.
  • Cape Securities, Inc.
  • Capital Financial Services, Inc.
  • Capital Investment Group, Inc.
  • Cascade Financial Management, Inc.
  • Center Street Securities, Inc.
  • Coastal Equities, Inc.
  • Colorado Financial Service Corp.
  • Concorde Investment Services, LLC
  • Crown Capital Securities, L.P.
  • Crystal Bay Securities, Inc.
  • H. Hill Securities, LLLP
  • David A. Noyes & Company
  • Dawson James Securities, Inc.
  • Dempsey Lord Smith, LLC
  • Detalus Securities, LLC
  • DFPG Investments, Inc.
  • Dinosaur Financial Group, LLC
  • Emerson Equity LLC
  • Financial West Group
  • FSC Securities Corp.
  • Geneos Wealth Management, Inc.
  • Great Point Capital, LLC
  • Hightower Securities, LLC
  • IBN Financial Services, Inc.
  • Innovation Partners LLC
  • International Assets Advisory, LLC
  • Investment Architects, Inc.
  • Kalos Capital, Inc.
  • Kingsbury Capital, Inc.
  • Landolt Securities, Inc.
  • Lewis Financial Group, L.C.
  • Lion Street Financial, LLC
  • Lowell & Company, Inc.
  • Madison Avenue Securities, Inc.
  • McDonald Partners LLC
  • McNally Financial Services Corp.
  • Moloney Securities Co., Inc.
  • Money Concepts Capital Corp.
  • MSC – BD LLC
  • National Securities Corp.
  • Newbridge Securities Corp.
  • Orchard Securities, LLC
  • Pariter Securities, LLC
  • Partier Securities, LLC
  • Private Client Services, LLC
  • Purshe Kaplan Sterling Investments
  • Royal Alliance Associates, Inc.
  • Sagepoint Financial, Inc.
  • Sandlapper Securities, LLC
  • SCF Securities, Inc.
  • Sentinus Securities, LLC
  • Silber Bennett Financial, Inc.
  • Stephen A. Kohn & Associates, Ltd
  • Stephen A. Kohn & Associates, Ltd.
  • Triad Advisors, LLC
  • Uhlmann Price Securities, LLC
  • United Planners’ Financial Services of America, LP
  • Vanderbilt Securities, LLC
  • Vestech Securities, Inc.
  • Western International Securities, Inc.
  • Westpark Capital, Inc.
  • Whitehall-Parker Securities, Inc.
  • Wilmington Capital Securities, LLC
  • Windsor Street Capital, LP
  • Woodbury Financial Services, Inc.

Some of the specific private placement offerings sold by GPB, including in some instances through broker-dealers, are as follows: GPB Holdings LP, GPB Holdings II, GPB Holdings III, GPB Automotive Portfolio LP, GPB Waste Management, LP, and GPB NYC Development LP

Private placement investments like GPB’s offerings are complex and fraught with risk.  To begin, private placements are often sold under a high fee and commission structure.  Reportedly, one brokerage executive has indicated that the sales loads for GPB private placements were 12%, including a 10% commission to the broker and his or her broker-dealer, as well as a 2% fee for offering and organization costs.  Such high fees and expenses act as an immediate drag on investment performance but may provide a powerful incentive for brokerages and advisors to sell the investments.  Other risks of Reg D private placements are discussed in our recent post concerning the FBI investigation into GPB.

The attorneys at Law Office of Christopher J. Gray, P.C. have significant experience representing investors in connection with complex investment products, including illiquid private placements and unregistered securities offerings.  Investors may contact us via the contact form on this website, by telephone at (866) 966-9598, or by e-mail at newcases@investorlawyers.net for a no-cost, confidential consultation.  Attorneys at the firm are admitted in New York, New Jersey, Wisconsin and various federal courts around the country, and handle cases nationwide (in cooperation with attorneys located in those states if required by applicable rules

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