Securities Litigation Attorney Pursues Compensation for Investor Losses in GPB Holdings

Wolper Law Firm P.A.

Fort Lauderdale, FL (Law Firm Newswire) June 19, 2019 – The Wolper Law Firm is currently investigating potential claims against various brokerage firms that received a total of $100 million in commissions by recommending their clients invest in private placement securities issued by GPB Capital Holdings.

GPB Capital Holdings, LLC is a New York based alternative asset management firm that started in 2013. Initially, the company accepted investments from 4,000 investors, receiving hundreds of millions of dollars in capital. In addition, GPB Capital Holdings encouraged brokerage houses to recommend its products by offering lucrative commissions, up to nearly 8 percent of the investment amount. In total, GPB Capital Holdings took in $1.5 billion. It is believed that brokerage firms Royal Alliance Associates, Inc., Sagepoint Financial, Inc., FSC Securities Corp., Woodbury Financial Services, Inc., Newbridge Securities, Ladenburg Thalmann, and Hightower Securities also sold GPB Capital Holdings Funds.

GPB Capital Holdings invested through a variety of different private placements, including the following:

· GPB Automotive Portfolio, LP
· GPB Cold Storage, LP
· GPB Eurobond Finance PLC
· GPB Holdings II, LP
· GPB Holdings, III, LP
· GPB Holdings Qualified, LP
· GPB Holdings, LP
· GPB NYC Development
· GPB Scientific, LLC
· GPB Waste Management, LP formerly: GPB Waste Management Fund, LP.

In 2017, GPB Capital Holdings was involved in a dispute with a former partner, who allegedly reneged on an agreement to sell several car dealerships. GPB Capital Holdings filed several claims against the former partner, among them a claim for $42 million. In the course of litigation, the former partner explained that GPB Capital Holdings is nothing more than a “very complicated and manipulative Ponzi scheme.”

In 2018, GPB Capital Holdings failed to file necessary financial reports with the Security and Exchange Commission (SEC). Shortly after that, the company announced that it was no longer accepting new investments and that it was “straightening out” the accounting for two of its larger funds – GPB Holdings II and GPB Automotive Portfolio. Amidst this uncertainty, the company’s auditor resigned, citing perceived risks.

These issues prompted several regulatory authorities, including the Financial Industry Regulatory Authority (FINRA) and the SEC, to look into GPB Capital Holdings. In addition, an investigation is pending into the 63 broker-dealers that sold private placements by GPB Capital Holdings. As a result of these investigations, investors stand to lose significant capital, including their principle investment. The brokerage firms that recommended private placement securities that were issued by GPB Capital Holdings may not have conducted the necessary due diligence before recommending these products and may be liable for investors’ losses.

The Wolper Law Firm represents investors nationwide in securities litigation on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a veteran trial lawyer who has handled hundreds of securities cases during his career. The Wolper Law Firm can be reached at 800.931.8452 or at https://wolperlawfirm.com/

Contact:
Wolper Law Firm, P.A.
Matt Wolper
Main Office
Fort Lauderdale, FL
1250 S. Pine Island Road
Suite 325
Plantation, FL 33324
Toll-Free: 800.931.8452
mwolper@wolperlawfirm.com

Additional Office Locations (*by appointment only)
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Wolper Law Firm, P.A. Investigates Brokerage Firm Buckman, Buckman & Reid For Unlawful Sales Practices

Wolper Law Firm P.A.

Fort Lauderdale, FL (Law Firm Newswire) June 14, 2019 – Wolper Law Firm, P.A. announces that it is investigating brokerage firm Buckman, Buckman & Reid regarding its investment sales practices with retail customers.

Buckman, Buckman & Reid is a brokerage firm founded in 1988 by H. John Buckman and John Reid. It is based in New Jersey but has branch offices nationwide. Since becoming a registered broker-dealer and member of the Financial Industry Regulatory Authority (“FINRA”), Buckman, Buckman & Reid has had sixteen (16) regulatory disclosures reported on its permanent record maintained by the Central Registration Depository (“CRD”).

Among the regulatory events include the following:

* In April 2019, Buckman, Buckman & Reid entered into a Letter of Acceptance, Waiver and Consent with FINRA and was ordered to pay a fine of $205,554, plus interest. The FINRA sanction related to “supervision of excessive trading and unsuitable concentration levels and supervision of registered representatives with disciplinary histories…”

* In July 2018, the Florida Office of Financial Regulation entered a cease and desist order after it “failed to have a schedule for the inspection of non-branch locations and criteria for the frequency of the inspections in the firm’s supervisory procedures.”

* In November 2015, Buckman, Buckman & Reid entered into a Letter of Acceptance, Waiver and Consent with FINRA and was ordered to pay a fine of $27,500. The FINRA sanction referenced that “the firm consented to the sanctions and to the entry of findings that…the firm executed portions of the customer orders at inferior prices.”

* In January 2015, Buckman, Buckman & Reid entered into a Letter of Acceptance, Waiver and Consent with FINRA and was ordered to pay a fine of $200,000. The FINRA sanction referenced that “the firm consented to the sanctions and to the entry of findings that it participated in the unlawful distributions of the shares of two issuers whose securities were not registered and were not subject to an applicable registration exemption.”

* In a recent arbitration filed by the Wolper Law Firm against Buckman, Buckman and Reid, it is alleged that its registered representative recommended the sale of a “low priced, thinly traded stock—CTX Virtual Trading Technologies (CTX).” The Buckman, Buckman and Reid Financial Advisor touted the CTX investment as an excellent growth opportunity with very little downside risk. When the price of CTX began to decline, it is alleged that the customer sought to sell CTX but Buckman, Buckman and Reid failed to facilitate the sale in accordance with the client’s instructions. The customer experienced substantial financial losses.

What Should I Do If I Experienced Investment Losses With Buckman, Buckman & Reid?

The sole purpose of this release is to investigate the sales practices of Buckman, Buckman & Reid. Current and former clients of Buckman, Buckman & Reid who have experienced investment loses due to misconduct on the part of the brokerage firm are encouraged to call the Wolper Law Firm at 800.931.8452 or contact us by email at mwolper@wolperlawfirm.com. The Wolper Law Firm represents investors nationwide in securities litigation and arbitration.

Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters.

Contact:
Wolper Law Firm, P.A.
Matt Wolper
Main Office
Fort Lauderdale, FL
1250 S. Pine Island Road
Suite 325
Plantation, FL 33324
Toll-Free: 800.931.8452
mwolper@wolperlawfirm.com

Additional Office Locations (*by appointment only)
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Tom Ajamie Appears on MSNBC’s Velshi and Rule

Houston, TX (Law Firm Newswire) May 17, 2019 – In a spirited discussion on MSNBC’s Velshi & Ruhle program on May 15, 2019, Tom Ajamie discussed how President Trump’s tweets drive the financial markets and the potential legal jeopardy for Trump and people in his inner circle.

“Look, he can move markets,” said Ajamie. “He is the most powerful man in the world, and everyone listens to how he speaks,” he said.

Tom went on to say that the president does have some immunity, but also questioned the extent to which family members and business associates may be implicated for insider trading based on confidential information that may have been passed to them in discussions with the president.

While the President’s tweets are not like those of a CEO who is bound by strict disclosure rules, Tom also referred to similar tweets by Trump in 2018 regarding Boeing and Lockheed Martin which impacted the share price of those companies, albeit in the short-term.

Whether any evidence of wrongdoing will emerge remains to be seen. Like many others, however, Tom expressed his concerns over the President’s indiscreet tweets. Moreover, Tom is widely recognized for his expertise in high-profile securities fraud cases, having recovered hundreds of millions of dollars for investors in securities class action litigation.

You can watch Tom’s appearance on MSNBC’s Velshi & Ruhle program here.

About the Firm
Ajamie LLP is a unique, boutique litigation law firm with a proven track record of large recoveries for victims of financial fraud at trials and arbitrations as well as a long history of defending corporations in complex commercial litigation. The firm is also widely recognized for providing cross-border representation in complex business litigation matters and has the skills and resources to represent clients worldwide. For more information, contact Debbie Molloy, Manager of Research and Communications, dmolloy@ajamie.com.

Contact:

Ajamie LLP

NEW YORK
460 Park Avenue
21st Floor
New York, NY 10022
P: 713.860.1600
F: 713.860.1699

HOUSTON
Pennzoil Place–South Tower
711 Louisiana, Suite 2150
Houston, TX 77002
P: 713.860.1600
F: 713.860.1699

When Is the Right Time to Call a Lawyer With Questions About a Margin Call?

Wolper Law Firm P.A.

Fort Lauderdale, FL (Law Firm Newswire) May 9, 2019 – A margin loan refers to money that an investor borrows from a brokerage firm. The margin loan is collateralized by the assets held in the customer’s investment account (i.e., securities). Customers are generally free to use the margin loan to buy additional securities or to withdraw the funds from the account to meet personal expenses.

Brokerage firms will issue a margin call if the value of the collateral assets supporting the margin loan falls below the maintenance requirement. Put another way, if the collateral declines, the brokerage firm expects that the customer will deposit additional assets so that the margin loan is secured. If the customer fails to deposit additional collateral, the brokerage firm will generally liquidate securities in the account in order to reduce or eliminate the margin balance.

Receiving an unexpected margin call from a brokerage firm can spark many questions regarding the risks of using margin, how the brokerage firm calculates the margin requirements and whether there has been impropriety by the brokerage firm in approving accounts for margin in the first instance. Contact an attorney specializing in matters involving securities litigation, if any of these circumstances are present.

There are some important facts that every investor should be aware of before using margin:

· Margin is a speculative investment technique. While it carries the potential to enhance investment returns, it also carries the potential to magnify losses. The use of margin is only suitable for customers with a more aggressive risk profile.

· The brokerage firms make money when customers use margin. Brokerage firms charge margin loan interest and also make money when customers use borrowed funds to purchase additional securities.

· Financial advisors make money when customers use margin. Most brokerage firms compensate financial advisors for securing lines of credit and margin loans in client accounts. Moreover, when the client uses margin to purchase additional securities, the financial advisor also stands to make more money.

· The margin agreements between customers and brokerage firms often permit brokerage firms to liquidate assets held in the brokerage account on demand and without notice to the customer.

There are several examples of financial advisors and brokerage firms engaging in misconduct with respect to margin loans and lines of credit. Some of the common forms of misconduct include:

● If the broker failed to adequately explain how margin loans work — the investing client did not realize the securities in their investing account were collateral for the margin loan and that if the account declined in value, they would have to either deposit more money or risk liquidation of their securities at a loss.

● If the broker failed to adequately explain the risks — the broker told the investing client the account would never experience a margin call and, therefore, they believed securities based lending was low risk.

● The brokerage firm violated its own policies and procedures when lending money to a client. For example, if an account is marked “conservative” or even “moderate” it should not be approved for margin given the amount of risk that is involved in margin trading.

● The brokerage firm liquidates assets held in the client’s account but does not do it in an orderly way or based on past course of conduct.

Securities fraud lawyer Matt Wolper stated, “Sometimes the misconduct is more subtle and occurs when a financial advisor discloses some of the risks but represents to the client that those risks will never come to fruition. This type of misconduct is designed to lull clients into a false sense of security.”

If a financial advisor or brokerage firm has inappropriately recommended the use of a margin loan or line of credit, call the Wolper Law Firm for a free consultation and case evaluation. Call (954)-406-1231 to schedule a free, no-obligation consultation with one of our attorneys.

Contact:
Wolper Law Firm, P.A.
Matt Wolper
Main Office
Fort Lauderdale, FL
1250 S. Pine Island Road
Suite 325
Plantation, FL 33324
Toll-Free: 800.931.8452
mwolper@wolperlawfirm.com

Additional Office Locations (*by appointment only)
Atlanta—Dallas—Denver—Indianapolis—Irvine—Naperville—New York City—Portland—Seattle

Brokers Grapple With False FINRA Expungement Information

Wolper Law Firm P.A.

Fort Lauderdale, FL (Law Firm Newswire) February 14, 2019 – It is very important for the general public to obtain accurate information about the financial advisors who help them to manage their assets and wealth. Yet, the Financial Industry Regulatory Authority (FINRA) makes it difficult for reputable and honest brokers to ensure only accurate information appears on FINRA’s Central Registration Depository (CRD) and BrokerCheck websites.

BrokerCheck and CRD are free databases that the general public can use to look up information on financial brokers. While those sites provide an invaluable service by informing the public on broker activities, they often contain false or misleading information that honest brokers find too difficult to remove without experienced legal help. “It’s critically important that FINRA ensure the integrity of expungement information by providing only the most accurate information about financial brokers,” said securities litigation attorney Matt Wolper, of the Wolper Law Firm. “One false item could ruin the career of an honest and outstanding broker. We need to ensure only accurate information appears to protect the general public as well as honest financial advisors.”

The information might contain allegations of wrong doing that were proven false, but the general public does not know that. It only sees a complaint or dispute that might have been resolved amicably and with no malice or wrongdoing done. When false information appears on the FINRA sites, some brokers have had to spend a substantial sum of money in legal costs to remove it. Others simply have given up due to difficulties with challenging bogus information. Brokers do not need to give up. Instead, they can obtain legal help from experienced securities litigation attorneys, clear their names and continue providing quality financial services to clients.

Contact:

Matt Wolper
Wolper Law Firm, P.A.
Main Office—Fort Lauderdale, FL
1776 N. Pine Island Road
Suite 224
Plantation, FL 33324
Toll-Free: 800.931.8452
mwolper@wolperlawfirm.com

Additional Office Locations (*by appointment only)
Atlanta—Dallas—Denver—Indianapolis—Irvine—Naperville—New York City—Portland—Seattle