Articles Tagged with Private Placements

On June 2, 2021, FINRA’s National Adjudicatory Council modified a FINRA’s Office of Hearing Officers decision from 2019 that was filed by FINRA’s Department of Enforcement against Titan Securities, Brad Brooks, and broker Richard Demetriou.   The modified order has resulted in a one-year suspension of Titan Securities’ CEO and owner Mr. Brooks.

The enforcement action arose out of alleged misconduct of Mr. Demetriou’s involvement with a private placement of preferred units in a limited partnership, RBCP Preferred, LLC (“RBCP”).  RBCP was organized by the owner of Mr. Demetriou’s previous member firm, who employed Mr. Demetriou to solicit investments from Mr. Demetriou’s previous firm, and Mr. Demetrious represented that RBCP was offered to them as a means of recouping those losses.   Mr. Demetriou recommended RBCP, made misrepresentations concerning the supposed collateral securing the investments, and told customers that an investment of 10 percent of their previous losses would result in recovery of their lost investments, plus a profit – alleged returns of more than 1,000 percent.  The investors did not recoup their losses but instead lost an additional $337,000 when RBCP failed, and the alleged collateral was not foreclosed.

FINRA’s National Adjudicatory Council made the following findings:

The Financial Industry Regulatory Authority’s Department of Enforcement has filed a disciplinary proceeding complaint against brokerage firm NYPPEX, LLC (CRD No. 47654), Former Chief Executive Officer (“CEO”) Laurence Allen (CRD No. 1063970), and Chief Compliance Officer (“CCO”) Michael Schunk (CRD No. 732595).  The complaint alleges:

  • Allen continued to serve as NYPPEX, LLC’s CEO after being statutorily disqualified in December 2018 when the Office of the New York Attorney General (“New York Attorney General”) secured an Ex Parte Order (the “Order”) from the Supreme Court of the State of New York that preliminarily enjoined and restrained Mr. Allen and NYPPEX Holdings from engaging in securities fraud, violating New York Securities law, and converting or otherwise disposing of or transferring funds from ACP X, LP, a private equity fund controlled by Mr. Allen. NYPPEX, LLC’s CCO Michael Schunk allowed Mr. Allen to continue to associate as NYPPEX, LLC’s CEO despite his statutory disqualification.
  • In March 2019, Mr. Allen devised and orchestrated an aggressive sales campaign to raise $10 million for NYPPEX Holdings through the sale of securities in NYPPEX Holdings. While soliciting these investments, NYPPEX, LLC, and Allen intentionally or recklessly made a series of material misrepresentations and omissions of material fact to prospective investors concerning, among other things, NYPPEX Holdings’ valuation, its financial condition, and its management team. NYPPEX and Allen also failed to disclose to prospective investors the New York Attorney General’s ongoing investigation into Mr. Allen’s and NYPPEX Holdings’ alleged fraudulent activity and the Order that preliminarily enjoined both of them.

Iorio Altamirano LLP is investigating claims on behalf of defrauded investors who were victims in the GPB funds scheme. The GPB funds were marketed to independent broker-dealers and investment advisers who would, in turn, sell the GPB funds to their retail investors. According to publicly available records filed with the SEC, broker-dealer WestPark Capital, Inc. likely received sales compensation for selling the GPB funds to retail investors.

If you lost money in GPB funds with WestPark Capital, Inc., you may have a claim.

Former WestPark Capital, Inc. broker John Reilly may have recommended GPB Capital funds or other investments in private placement offerings to clients.

Iorio Altamirano LLP is investigating claims on behalf of defrauded investors who were victims in the GPB funds scheme. The GPB funds were marketed to independent broker-dealers and investment advisers who would, in turn, sell the GPB funds to their retail investors. According to publicly available records filed with the SEC, broker-dealer Dinosaur Financial Group, L.L.C. likely received sales compensation for selling the GPB funds to retail investors.

If you lost money in GPB funds with Dinosaur Financial Group, L.L.C., you may have a claim.

Former Dinosaur Financial Group, L.L.C. broker David Michael Karandos may have recommended GPB Capital funds or other investments in private placement offerings to clients.

Iorio Altamirano LLP is investigating claims on behalf of defrauded investors who were victims in the GPB funds scheme. The GPB funds were marketed to independent broker-dealers and investment advisers who would, in turn, sell the GPB funds to their retail investors. According to publicly available records filed with the SEC, broker-dealer McDonald Partners LLC likely received sales compensation for selling the GPB funds to retail investors.

If you lost money in GPB funds with McDonald Partners LLC, you may have a claim.

McDonald Partners LLC has faced FINRA arbitration complaints from customers seeking to recover investment losses. McDonald Partners LLC broker Rita Mansour may have recommended GPB Capital funds or other investments in private placement offerings to clients.

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