Texas Regulators Fine Madison Avenue Securities
GPB Automotive Portfolio, LP
June 2023- Austin, Texas
San Diego based Madison Avenue Securities was fined $20,000 by the Texas State Securities Board (TSSB) and ordered to pay restitution to 7 Texas residents who were sold investments in GPB Automotive Portfolio, LP (GPB Auto).
According to the TSSB Order, from 2014-2017 Madison Avenue Securities failed to establish, maintain, and enforce a supervisory system to supervise the activities of its agents relating to the sale of certain alternative investments.
Findings made by the TSSB include:
- GPB Capital Holdings (GPB) is a New York based alternative asset management firm that acted as a general partner and fund manager for limited partnership funds.
- From 2013-2018, GPB raised more than $1.7 billion for at least five of its limited partnership funds from approximately 17,000 retail investors nationwide.
- GPB relied on independent broker dealers like Madison Avenue Securities to solicit investments in their funds, including GPB Auto.
- In February 2021, following state and federal actions against certain principals of GPB, a court appointed monitor was put in place to oversee material corporate transactions by GPB and GPB Auto.
- In September 2021, GPB began liquidating assets and there is about $1 billion being held in anticipation of distributions once a receiver is appointed and a plan for distribution accepted. See https://gpb-cap.com/secfilings/.
- While Madison Avenue Securities had developed an alternative investment account score worksheet intended to be used for review and processing purposes to qualify investors for purchases of investments like GPB Auto Madison Avenue Securities inconsistently applied supervisory procedures at a branch office in Texas.
Madison Avenue Securities, as well as numerous other broker dealers, in Texas and nationwide, face a barrage of FINRA arbitrations by clients, many of whom are retired, who are seeking recovery of damages for losses as a result of investing in GPB products, including GPB Auto. FINRA has fined 15 broker dealers $3.7 million for marketing private placements sold by GPB. The US Securities & Exchange Commission has filed charges alleging that GPB was a $1.7 billion Ponzi scheme.
See these posts involving sales of GPB products:
- Madison Avenue Broker Dimitry Tikhonov- Torrance, CA
- Coastal Equities Broker Luke Johnson- Scottsdale, AZ
- McNally Financial Broker Mark Kemp- Corpus Christi, TX
- Berthel Fisher Facing $32 Million in Alternative Investment Claims
- DAI Securities Broker Joseph Michaletz-Mankato, MN
- Kalos Capital Broker David Mirolli- Alpharetta, GA
- Kalos Capita Broker Joseph Roos-Belmont, NC
- Triad Advisors Broker Jack ‘JJ’ Jones- Houston, TX
- How to Recover Losses on GPB Capital Investments-Nationwide
If you have questions about GPB losses please contact us for a no charge discussion of your rights with an experienced securities attorney.
Rex Securities Law , located in Boca Raton, FL, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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