Category Archives: Massachusetts Securities Division

How to Recover Losses on GPB Funds

September 2019

In June 2019 GPB Capital reported that their two largest funds have dropped dramatically. GPB Holdings II has dropped by more than 25% and GPB Automotive Portfolio has declined by 39%, according to the company.

A $50,000 in investment in GPB Holdings II is now worth $37,300 and $50,000 invested in GPB Automotive Portfolio is estimated to be worth just over $30,000.

GPB raised over $1.25 billion in these high risk private placements that were sold to investors in $50,000- $100,000 increments. The financial press now reports that the company earned commissions of $167 million on these sales, by charging 9.3%, a rate that is just below the industry cap on commissions.

GPB Capital has been under investigation by state and federal authorities for potential securities law violations. In February 2019 the FBI made an unannounced visit to company headquarters in New York. Earlier investigations by the Massachusetts securities regulators and the Securities and Exchange Commission are widely reported.

According to the financial press, GPB Funds were sold by as many as 80 independent broker dealers to over 6,000 investors nationwide. Brokerage firms who sold GPB Funds include: Aegis Capital, American Capital Partners, Arkadios Capital, Capital Financial Services, Financial West Group, FSC Securities, Great Point Capital, Kalos Capital, Lion Street Financial, Money Concepts Capital  Royal Alliance Associates, Sagepoint Financial,  and Woodbury Financial Services.

Recently the Portland Press Herald reported that David Rosenberg was fired as chief executive officer of Prime Automotive Group. His firing followed the filing of a lawsuit in June 2019 by Rosenberg in which he accuses GPB Capital Holdings, which owns a majority stake in Prime Automotive, of running a Ponzi Scheme.

The GPB offerings include:

  • GPB Holdings
  • GPB Holdings I & II
  • GPB Automotive Portfolio
  • GPB Waste Management 
  • GPB Eurobond
  • GPB NYC Development
  • GPB Cold Storage
  • GPB Scientific
  • GPB Holdings Qualified

If you have questions about an investment you made in and of GPB Funds,  contact us for a no charge consultation to learn about your legal options. You may be able to recover damages through FINRA arbitration.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Bruce Worthington-Former Founders Financial Securities Broker-Discloses Regulatory Event, Pending Investigation, Termination & Customer Complaint-Middleton, MA

February 2019-Middleton, MA

According to publicly available records Bruce C. Worthington (CRD# 2193895) ,  a  stockbroker previously employed by Founders Financial Securities, discloses a pending regulatory event, a prior regulatory event, a  pending FINRA investigation,  a termination from employment and 2 currently outstanding judgement/liens.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

Massachusetts regulators recently filed  complaint #E·2018·0119 against Worthington claiming that  from 2006 to 2018,  he took money from at least one retired client Massachusetts customer and he used the investment money for his own personal use and benefit.   This retired client had trusted Worthington with his account for 15 years.

In December 2018 FINRA case #2018059894201 was initiated by  FINRA.   Worthington failed to respond to FINRA request for information and he was suspended indefinitely.

In 9/2018, the United States Securities and Exchange Commission began an investigation into Worthington after concerns arose about his receipt and disposition of customer funds prior to 2013.    This investigation is still pending.

Worthington  began working  for Founders Financial Securities in June of 2013.   He  was discharged in September of 2018, and Founders Financial made the following allegations on Worthington’s record:  “The firm terminated its relationship with Mr. Worthington after concerns arose about his receipt and disposition of customer funds prior to his association with Founders Financial Securities“.

Worthington discloses a business affiliation with LifeHouse Financial Group in Rowley, MA.

If you have losses in an account handled by Bruce Worthington, contact us for a no charge consultation to learn how you may be entitled to recover damages through FINRA arbitration.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

G.A. Repple Broker Accused of Lying to Clients on Website

July 2018

Securities regulators from Massachusetts have accused Alan P. Siegel, a broker with G.A. Repple of lying on his website by claiming that he had never received a customer complaint during his time in the securities industry.

In the administrative complaint filed by the office of William Galvin, chief securities regulator of the state, allegations are made that Siegel violated various state statutes when he intentionally published these false representations in an attempt to solicit new customers.

According to the complaint Siegel’s website contained a “Reliability Report” which stated that he had never had a complaint filed against him during his time in the securities industry.

The FINRA records for Siegel on the BrokerCheck website disclose that Alan Paul Siegel  was the subject of three prior customer disputes that were all resolved with cash settlements.

His company, G.A. Repple, is charged with failing to supervise Siegel, who is from Easton, MA by rubber stamping the content on his website. The regulator seeks a cease and desist order, censure, sanctions and an administrative fine.

G.A. Repple is headquartered in Casselberry, Florida, and according to their website, has 46 offices and over 25,000 accounts.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

LPL Financial to Pay $26M to Resolve Regulatory Investigation

May 2018

The North American Securities Administrators Association (NASAA) announced that a settlement has been reached between state securities regulators and LPL Finanical requiring LPL Finanical to repurchase from investors certain securities sold since October 2006 and to pay civil penalties that could total $26 million or more.

The settlement was led by regulators from Alabama and Massachusetts and relates to unregistered, non exempt securities sold by LPL.

Regulatory sanctions are nothing new for LPL Financial. Their FINRA record discloses 111 prior regulatory events.

If you have questions about how your account has been handled by your advisor contact us for a no charge consultation to discuss your legal options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

San Antonio Based Investment Professionals Inc. Sanctioned for Unsuitable Advice

October 2017-San Antonio, Texas

San Antonio, Texas, based stock brokerage firm Investment Professionals, Inc.  (IPI)  recently was ordered by William F. Galvin of the Massachusetts Securities Division to pay a $100,000 fine and offer restitution to four senior clients who were allegedly sold unsuitable investment products from offices on the premises of local financial institutions.

In addition the settlement order requires IPI to retain an independent compliance consultant to review the firm’s policies governing supervision of their Massachusetts-registered financial consultants and the sales of securities to persons over 65.

In November 2016, Massachusetts regulators charged IPI with using high pressure sales contests and selling unsuitable investment products to senior citizens who were depositors at community banks.

“This case highlights the dangers of aggressive sales culture that leaves older customers exposed to pressure to buy unsuitable investments,” Secretary Galvin said. “This is especially true when the broker dealer is operating out of a community bank.”

Link to the Massachusetts Securities Division/ Investment Professionals Consent Order. 

In February 2017, without admitting or denying, Investment Professionals agreed to pay FINRA $125,000 and to the entry of findings that from 10/2011-10/2013 it executed 167 non-bona fide municipal transactions without a change of beneficial ownership and that the execution of seven of the transactions were pre -arranged. FINRA also found that IPI did not have written supervisory procedures applicable to trading in limited partnership accounts. FINRA Case 20120313632.

Investment Professionals, Inc., has been a FINRA member since 1992 and operates over 300 branch offices and over 360 employees nationwide.

FINRA records disclose that Investment Professionals, Inc. has 15 prior final regulatory events.

If you have questions about an account handled by Investment Professionals, Inc. call to learn your options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870