Securities Arbitration Lawyer Blog
Iorio Altamirano LLP is currently investigating former MML Investor Services, LLC broker Oscar Francis, who reportedly recommended that his customers invest in private placement securities issued by GPB Capital. The GPB notes, which are private securities offerings exempt from registration with the Securities and Exchange Commission (SEC), are inherently risky investments. These investments are suitable only for highly sophisticated investors who understand the risks and can afford a significant monetary loss. Unfortunately, many brokerage firms and brokers sold the GPB Capital securities to retirees and unsophisticated investors because they paid a high up-front commission.
Mr. Francis was a broker at MML Investors Services, LLC, Inc. in Ft. Lauderdale, Florida, from July 2008 to May 2017. At that time, MML terminated his employment connected with an investigation into an undisclosed outside business activity, selling away, and an unauthorized non-securities life insurance transaction. In August 2018, Mr. Francis pleaded guilty to wire fraud after admitting that between June 25, 2012, and May 31, 2017, he devised a scheme to defraud at least eleven investors out of approximately $665,000. Mr. Francis was subsequently sentenced to 41 months in prison and ordered to pay over $420,000 in restitution to clients. In May 2019, he was also barred by the SEC from association from associating with any broker, dealer, or investment advisor.
Iorio Altamirano LLP is also investigating the sales practices and due diligence of MML Investors Services, LLC related to its sale of GPB Capital funds. It is believed, according to reports, that MML has been subjected to numerous lawsuits from customers in the form of FINRA securities arbitration claims to recover investment losses.
Securities arbitration is a unique and complex practice area. Investors should seek out experienced counsel who can navigate the arbitration process and effectively advocate on their behalf.
Iorio Altamirano LLP is a securities arbitration law firm located in the heart of New York City. Iorio Altamirano LLP represents investors nationwide who have suffered investment losses due to securities fraud.
If you have suffered financial losses as a result of any of the following GPB private placement offerings, contact Iorio Altamirano LLP for a free and confidential review of your legal rights:
- GPB Automotive Portfolio, LP
- GPB Cold Storage LP
- GPB Holdings, LP
- GPB Holdings II, LP
- GPB Holdings III, LP
- GPB Holdings Qualified, LP
- GPB NYC Development, LP
- GPB Waste Management Fund, LP
Financial Advisor Oscar Francis (CRD No. 5094722)
Mr. Francis had 11 years of experience and has been associated with three different brokerage firms:
- MML Investors Services, LLC in Ft. Lauderdale, FL, from July 2008 to May 2017.
- AXA Advisors, LLC in Ft. Lauderdale, FL, from March 2007 to July 2018.
- Raymond James & Associates, Inc. in Boca Raton, FL, from April 2006 to February 2007.
MML Investors Services fired Mr. Francis on May 31, 2017, connected with a U.S. Department of Justice investigation into an undisclosed outside business activity and selling away. In August 2018, Mr. Francis pleaded guilty to wire fraud after admitting that between June 25, 2012, and May 31, 2017, he devised a scheme to defraud at least eleven investors out of approximately $665,000. Mr. Francis solicited his MML Investor Services clients, with whom he attended church, to invest in Mahum, Inc., which he incorporated and controlled. Mr. Francis falsely represented that Mahum, Inc. was affiliated with MML, and the investments in Mahum, Inc. would generate high rates of return. Mr. Francis also stole the funds he received, spending them on cocaine, alcohol, strip clubs, and luxury items. When investors inquired or complained about their investments’ status, Mr. Franciss would obtain loans and use other investment funds to repay the investors to prevent them from reporting Mr. Francis’s activity to MML or law enforcement.
Mr. Francis was subsequently sentenced to 41 months in prison and ordered to pay over $420,000 in restitution to clients. In May 2019, he was also barred by the SEC from association from associating with any broker, dealer, or investment advisor.
According to Mr. Francis’s public disclosure report with FIRNA, MML Investor Services, LLC has paid nearly $400,000 to five complaining customers:
- Customer Dispute (December 2018): In December 2018, a customer filed a complaint alleging $24,000 in damages. The customer alleged that in 2016, he believed that he was investing in a MassMutual product, which was later discovered to be a fraudulent investment, in which Mr. Francis misappropriated client funds. MML Investor Services, LLC settled the matter for $31,828.
- Customer Dispute (November 2018): In November 2018, a customer filed a complaint alleging $59,360 in damages. The customer alleged that in 2016, he believed that he was investing in a MassMutual product, which was later discovered to be a fraudulent investment, in which Mr. Francis misappropriated client funds. MML Investor Services, LLC settled the matter for $59,540.95.
- Customer Dispute (August 2017): In August 2017, a customer filed a complaint alleging $20,000 in damages. The customer alleged that in 2016, he believed that he was investing in a MassMutual product, which was later discovered to be an unapproved investment. MML Investor Services, LLC settled the matter for $20,370.
- Customer Dispute (August 2017): In August 2017, a customer filed a complaint alleging that in 2016 he believed that he was investing in a MassMutual product, which was later discovered to be an unapproved investment. MML Investor Services, LLC settled the matter for $44,321.
- Customer Dispute (May 2017): In May 2017, a customer filed a complaint alleging that in 2016 he believed that he was investing in a MassMutual product, which was later discovered to be an unapproved investment. MML Investor Services, LLC settled the matter for $243,652.
How to Recover Losses or Obtain a Free Consultation
If you have suffered financial losses investing with Mr. Francis or MML Investor Services, LLC, or suspect that Mr. Francis did not have your best interest in mind when recommending an investment, such as one of the GPB Capital notes, contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.