Articles Posted in Private Placements

Iorio Altamirano LLP, a leading securities arbitration law firm, has filed a case through the Financial Industry Regulatory Authority (FINRA) against American Capital Partners.

The claim, which Iorio Altamirano LLP filed on behalf of an investor in the GPB Automotive Portfolio, LP fund, seeks to recover investment losses as a result of the investment advisor’s recommendation to invest in GPB Capital.

GPB Capital sold unregistered and high commission limited partnership interests in a total of eight alternative-asset investment funds. The GPB Funds were marketed to independent broker-dealers and investment advisers who would, in turn, sell the GPB Funds to their retail investors. There are serious concerns that broker-dealers may have failed to conduct reasonable due diligence about the GPB Funds and GPB Capital.

FINRA has suspended Fusion Analytics Securities, LLC’s former Chief Compliance Officer Luis Fernando Restrepo from the securities industry for a six-month period over compliance and supervisory failures related to, among other things, the sale of private placements. Mr. Restrepo consented to a six-month suspension from associating with any FINRA member in all principal capacities and will have to requalify as a principal prior to acting in that capacity with any FINRA member.

During his association with Fusion, Mr. Restrepo was the firm’s Chief Compliance Officer (CCO) and Anti-Money Laundering Compliance Officer (AMLCO).

Mr. Restrepo’s suspension is scheduled to begin on August 2, 2021, and end on February 1, 2022.

FINRA has suspended former Lakeridge Capital Inc. broker John Braddock from the securities industry for 5 months for preparing and distributing a private placement memorandum that negligently misrepresented and omitted facts relevant to an investment in a private placement. The alleged misconduct is said to have taken place between September 2018 and April 2021.

If you have lost money with John Braddock, or Lakeridge Capital Inc., contact FINRA arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Iorio Altamirano LLP represents investors nationwide that have disputes with their financial advisors or brokerage firms, such as Lakeridge Capital Inc.

FINRA has barred former LPL Financial LLC broker John Scott from the securities industry. According to FINRA, the matter originated from an investigation of Mr. Scott’s potential participation in certain private placement offerings.

If you have lost money with John Scott, or LPL Financial LLC, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Iorio Altamirano LLP represents investors in disputes with their financial advisors and brokerage firms, such as LPL Financial LLC.

We are continuing our discussion of FINRA’s 2021 Report on Risk Monitoring and Examination Activities. In Part Two, we will focus on FINRA’s comments and findings related to Variable Annuities, Outside Business Activities, and Private Securities Transactions and Private Placements. These are all areas of interest that directly affect retail investors, and in which FINRA found deficiencies following its examination of member-firms. 

If you are interested in FINRA’s comments regarding Regulation Best Interest (Reg BI), Communications with the Public, and Best Execution, you can read Part One of our discussion here.

Variable Annuities

CFD Investments, Inc. (“CFD”) and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) over CFD’s failure to conduct reasonable due diligence into Payson Petroleum, Inc.’s private placement offerings and its failure to document the limited due diligence that it conducted. As part of the August 24, 2020 AWC, CFD was censured and suspended for 45 days from all private placement activities. CFD’s suspension is in effect through November 18, 2020. CFD also agreed to pay $750,000 in partial restitution to customers.

The AWC allegations involve CFD’s oil and gas private placement sales to retail customers. Specifically, that between March 2015 and February 2016, CFD recommended and sold interests in Payson to 31 of its retail customers who invested nearly $2.2 million. CFD did not conduct reasonable due diligence into the offerings prior to making its recommendations. When Payson went bankrupt in 2016, CFD’s 31 customers lost all or substantially all of their investments. CFD and its representatives received $198,100 in commissions from Payson for these sales.

The private placement offerings were approved through CFD’s Chief Compliance Officer Matthew Bahrenburg (CRD#: 5295661). Bahrenburg has served in the role since 2012 and has been registered with FINRA since 2007. FINRA suspended Bahrenburg from engaging in principal and supervisory activities through November 4, 2020. The investigation found that CFD, through Bahrenburg:

Contact Information