Tag Archives: GPB Automotive Portfolio

Luke M. Johnson-Coastal Equities Broker-Discloses Customer Suits & Termination From Employment-Scottsdale, AZ

January 2020-Scottsdale, AZ

We are investigating  former Coastal Equities Inc. broker Luke Michael Johnson on behalf of an Arizona resident who alleges that she was sold an unsuitable investment in GPB Capital Holdings. GPB Capital Holdings is currently under investigation by the Securities & Exchange Commission and the Financial Industry Regulatory Authority (FINRA).

GPB Capital Holdings‘ affiliates include:

  • GPB Holdings LP
  • GPB Holdings I
  • GPB Holdings II
  • GPB Automotive Portfolio LP
  • GPB Waste Management LP
  • Armada Waste Management
  • GPB NYC Development LP

GPB Holdings II and GPB Automotive have both seen substantial declines in value over recent months.

According to publicly available records Luke M. Johnson, discloses 6 pending customer disputes, 3 prior customer disputes and 3 terminations from employment.

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.

In FINRA Case 18-4125 a customer of Coastal Equities/ Coastal Investment Advisors alleged that Johnson made unsuitable recommendations of alternative investments and limited partnerships. That case was settled for $225,000.

In FINRA Case 18-2266 a customer of Coastal Equities alleged that Johnson recommended unsuitable real estate securities causing losses. That case was settled for $140,000.

In pending FINRA Case 19-1548, a customer of Coastal Equities is seeking damages of $750,000 and alleges that Johnson made misrepresentations and omissions in  soliciting the sale of private placement investments.

In five other pending cases, the customers of Coastal Equities are seeking unspecified damages for mismanagement of their portfolios.

Luke Johnson is not currently registered with any broker dealer. He was  employed by Coastal Equities from 4/2012 until 12/2019. He does business under the name of Legend Capital Group in Scottsdale, AZ.

Johnson was discharged by Coastal Equities in 11/2019. Coastal makes the following allegation on Johnson’s FINRA record: “Registered Representative failed to follow firm policy to timely forward a customer complaint to his superior and compliance, and by inconsistently stating a customer’s liquid net worth on client disclosure documents.”

If you have an account handled by Luke M. Johnson that you believe has been mishandled, contact us to learn how 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

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