Private Placements

Morgan Stanley Advisor Brian Pfeifler Has Alternative Investment Complaints

November 24, 2024 | by Staff Attorney

Broker Brian Pfeifler (Pfeifler), currently employed at Morgan Stanley (Morgan Stanley) has been subject to at least two customer complaint during the course of his career. The complaints allege that Pfeifler made unsuitable trading recommendations, and recommending an overconcentration of high risk alternative investments including private placements and hedge funds.

According to a BrokerCheck report, in December 2023, a customer alleged that Pfeifler engaged in violations of the securities laws by, among other things, making unsuitable investments with respect to alternative investments from 2022 to 2023. The claim is currently pending.

In January 2024, a customer alleged that Pfeifler engaged in violations of the securities laws by, among other things, making unsuitable investments with respect to alternative investments from December 2021 to January 2024. The claim is currently pending.

Alternative investments include a number of different type of products including DDPs, non-traded REITs, oil and gas offerings, equipment leasing products, hedge funds, and other alternative investments. Depending on the type and structure of some alternative investments they can be configured in ways that virtually never profit investors and are almost always unsuitable for investors because of their high fee and cost structure. Brokers selling these products are paid additional commission in order to hype these inferior quality investments providing a perverse incentives to create an artificial market for the investments.

Ariel Rivero Has Customer Complaints Related to High Risk Investments

September 19, 2022 | by Staff Attorney

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial advisor Ariel Rivero (Rivero) has at least two disclosable events. These events include two customer complaints alleging that Rivero engaged in some form of investment related misconduct in the handling of the client’s accounts. Rivero is currently employed by Insigneo Securities, LLC (Insigneo). Rivero’s customer complaints alleges that Rivero recommended unsuitable investments in different investment products including options, ETFs, and private placements that include LMS Investments LLC and Octagon, S.A.

In April 2022 a customer complained that Rivero violated the securities laws by alleging that Rivero breached their fiduciary duties by recommending, failing to supervise the recommendation of, and misrepresenting the risks and facts related to two unsuitable outside investments. The investor alleged damages of $999,999 and the claim is currently pending.

In September 2021 a customer complained that Rivero violated the securities laws by alleging that Rivero breached fiduciary duties by placing the investor into unsuitable and risky investments; unauthorized use of client funds; and failure to supervise and to maintain adequate system of supervision from late 2020 onward. The claim settled for $260,000.

Woodbury Financial’s Daryl Serizawa Has Customer Complaints

August 28, 2022 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that Daryl Tomobu Serizawa, currently employed by Woodbury Financial Services, Inc., has been subject to at least three customer complaints during his career. According to records kept by the Financial Industry Regulatory Authority (FINRA), Serizawa’s customer complaints allege that Serizawa engaged in excessive trading, made investments that were not in the client’s best interests, and inappropriately sold private investment funds.

In December 2019, a customer complained that Serizawa violated the securities laws by alleging that Serizawa inappropriately sold private investment funds. The claim settled in the amount of $335,875.45.

In March 2005, a customer complained that Serizawa violated the securities laws by alleging that Serizawa took advantage of the customer in making purchases and sales that were not always in their best interest. Rather, it is claimed that these transactions were done specifically to generate commissions. This claim alleged $119,754.88 in damages and was denied.

In March 2004, a customer complained that Serizawa violated the securities laws by alleging that Serizawa engaged in excessive trading. The claim settled in the amount of $22,000.

National Securities Christopher Ortiz Has Private Placement Complaints

May 18, 2021 | by Staff Attorney

Advisor Christopher Ortiz (Ortiz), currently employed by National Securities (National Securities) has been subject to at least two customer complaints during the course of his career. According to a BrokerCheck report the complaints appear to concern unsuitable investments in private placements investments. These allegations may concern investments in GPB Capital Holdings (GPB Capital) related investments. National Securities is known to have approved their brokers to sell GPB Capital to their clients.

On February 4, 2021 the U.S. Securities and Exchange Commission (SEC), the U.S. Attorney’s Office for the Eastern District of New York (DOJ), and seven states filed separate simultaneous actions against GPB Capital and other defendants connected to the firm accusing it of being a Ponzi-like scheme. In a press release the SEC stated that it “charged three individuals and their affiliated entities with running a Ponzi-like scheme that raised over $1.7 billion…”

As reported by Bloomberg “If proved, [GPB] would be one of the largest such schemes to target individual investors since the massive frauds of Bernard Madoff and Robert Allen Stanford came to light.” The DOJ indicted David Gentile, the founder of GPB, Jeffry Schneider, the owner and CEO of Ascendant Capital LLC, and Jeffrey Lash, a former managing partner of GPB relating to the fraud. If convicted, the defendants each face up to 20 years’ imprisonment.[1]

New York Attorney General Letitia James accused GPB of “defrauding investors across the country out of more than $700 million through a Ponzi-like scheme that offered to pay investors generous monthly distributions they could never deliver.”[2] Further, “Investors put in more than $1.8 billion into GPB funds but were left without a single cent of profit,” said Attorney General James. Investor funds are alleged to have been spent to subsidize expensive toys like private planes, Ferrari sports cars, and luxury travel for the three defendants.

What’s GPB Worth Now? “According to court papers, GPB claimed to manage just $239 million as of December, despite raising the $1.8 billion.”[3] If true, this would reflect approximately 13% of investors’ total investments across all GPB funds. Continue Reading

National Securities Advisor Troy Goldberg Has Private Placement Complaints

April 5, 2021 | by Staff Attorney

Advisor Troy Goldberg (Goldberg), currently employed by National Securities (National Securities) has been subject to at least 13 customer complaints during the course of his career. According to a BrokerCheck report the six most recent customer complaints filed since 2019 appear to concern unsuitable investments in private placements investments. These allegations may concern investments in GPB Capital Holdings (GPB Capital) related investments. National Securities is known to have approved their brokers to sell GPB Capital to their clients.

On February 4, 2021 the U.S. Securities and Exchange Commission (SEC), the U.S. Attorney’s Office for the Eastern District of New York (DOJ), and seven states filed separate simultaneous actions against GPB Capital and other defendants connected to the firm accusing it of being a Ponzi-like scheme. In a press release the SEC stated that it “charged three individuals and their affiliated entities with running a Ponzi-like scheme that raised over $1.7 billion…”

As reported by Bloomberg “If proved, [GPB] would be one of the largest such schemes to target individual investors since the massive frauds of Bernard Madoff and Robert Allen Stanford came to light.” The DOJ indicted David Gentile, the founder of GPB, Jeffry Schneider, the owner and CEO of Ascendant Capital LLC, and Jeffrey Lash, a former managing partner of GPB relating to the fraud. If convicted, the defendants each face up to 20 years’ imprisonment.[1]

Advisor Joseph Hain Has Complaints Over Private Placement Reccommendations

February 22, 2021 | by Staff Attorney

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial advisor Joseph Hain (Hain), currently employed by Noble Capital Markets, Inc. has been subject to at least two customer complaints during the course of his career. Hain’s customer complaints alleges that Hain misrepresented private placement investments among other allegations of misconduct relating to the handling of their accounts.

At Gana Weinstein LLP, we often hear from investors who were recommended by their advisors to purchase high risk private placement investments and suffered substantial – often crushing losses as a result. Our firm regularly represents these investors in disputes with the advisors and brokers who sold these products without adequate disclosure. Brokers have a responsibility to conduct due diligence on all private placement offerings. Due diligence includes an investigation into the investment’s properties including its benefits, risks, tax consequences, issuer, history, and other relevant factors.

In January 2020 a customer complained that Hain violated the securities laws by alleging that Hain made investments recommendations that were materially misrepresented concerning an investment in a private placement. The claim alleges $500,000 in damages and is currently pending.

Triad Advisor Darrin Cohn Has Alternative Investment Complaints

December 1, 2020 | by Staff Attorney

Advisor Darrin Cohn (Cohn), currently employed by Triad Advisors LLC (Triad Advisors) has been subject to at least two customer complaints during the course of his career. According to a BrokerCheck report these customer complaints appears to concern unsuitable investments in alternative investments. These allegations may also concern investments in GPB Capital Holdings (GPB Capital) related investments. Triad Advisors are known to have approved their brokers to sell GPB Capital to their clients.

GPB Capital is facing multiple accusations of being a Ponzi scheme, an ongoing U.S. Securities and Exchange Commission (SEC) and FBI investigations, and even GPB’s chief compliance officer being indicted for illegally obtaining information on the SEC’s investigation. Now even Volkswagen and Toyota are threatening to pull the plug on GPB Capital auto dealerships. While advisors have been telling investors to do absolutely nothing and just hang in there – this is nothing more than just additional poor advice. In November 2019 GPB Capital’s admitted that no financial audit would occur anytime in the near future. The firm has admitted that it has never been profitable and has merely returned investor capital in the past in order to fake a successful business model. In sum, investors now know there is nothing to hang onto. By the day, advisor recommendations to do nothing appear to be completely self-serving, out of the loop, and not in the interest of the investor.

In March 2020 a customer complained that Cohn violated the securities laws by alleging that Cohn engaged in sales practice violations related to unsuitable investments in alternative investments. The claim alleges $400,000 in damages and is currently pending.

In March 2020 a customer complained that Cohn violated the securities laws by alleging that Cohn engaged in sales practice violations related to unsuitable investments in multiple alternative investments. The claim alleges $200,000 in damages and is currently pending.

Mark Cline Subject to Customer Complaints Over Private Placement Sales

October 4, 2020 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck reports that financial advisor Mark Cline (Cline), currently employed by National Securities Corporation (National Securities) has been subject to at least 12 customer complaints and one criminal matter during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Cline’s customer complaints involves the sale of private placements. The complaints allege that Cline recommended unsuitable investments in these private placements.

At Gana Weinstein LLP, we often hear from investors who were recommended by their advisors to purchase high risk private placement investments and suffered substantial – often crushing losses as a result. Our firm regularly represents these investors in disputes with the advisors and brokers who sold these products without adequate disclosure. Brokers have a responsibility to conduct due diligence on all private placement offerings. Due diligence includes an investigation into the investment’s properties including its benefits, risks, tax consequences, issuer, history, and other relevant factors.

Private placements are bond, equity, or other debt instruments issued in reliance on a statutory or rule-based exemption from the registration requirements administered by the (SEC). The private placement industry was created based upon the reasoning that exempting private placements from registration is appropriate where purchasers have the economic ability, sophistication, and the professional advice necessary to do without the regular protection afforded by the disclosures required through registration. According to sources, a total of $33.5 billion was raised in 647 transactions through the third quarter of 2018.

James Kirchner Has Complaints Over Private Placement Sales Practices

May 12, 2020 | by Staff Attorney

Former stockbroker James Kirchner (Kirchner), former employed by brokerage firms David A. Noyes & Company (David Noyes), IFS Securities, and Cabot Lodge Securities LLC (Cabot Lodge) has been subject to at least seven customer complaints and one employment terminations for cause during the course of his career. According to a BrokerCheck report some of the customer complaints concern private placements. The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high risk products when they are not vetted appropriately by the firm selling them.

In March 2020 a customer complained that Kirchner violated the securities laws by alleging that Kirchner engaged in sales practice violations related recommending alternative investments that were not suitable. The claim alleges $175,000 in damages and was settled for $90,000.

In January 2020 a customer complained that Kirchner violated the securities laws by alleging that Kirchner engaged in sales practice violations related to recommending private placements during 2016 and 2017 that were not suitable. The claim alleged $300,000 in damages and was settled for $145,000.

In July 2019 a customer complained that Kirchner violated the securities laws by alleging that Kirchner engaged in sales practice violations related to recommending private placements during 2016 that was not suitable. The claim alleged $100,000 in damages and was settled for $50,000.

Gana Weinstein Represents Multiple Walton Land Fund Investors

March 23, 2020 | by Staff Attorney

The law offices of Gana Weinstein LLP continue to investigate broker sales of the Walton Land Fund companies (Walton Land). Walton Land has been solicited many brokers across the country as investments in real estate. Walton Land is a highly speculative private placement that invests on vacant undeveloped properties that do not generate income. The hope is that one day in the far future Walton Land can sell the properties for a profit to someone else to develop. The problem is that Walton Land needs to pay carrying costs on the properties while they do not generate income. In addition, newsources have exposed that Walton Land makes a profit on these properties by selling them to the funds at a huge mark up

As a recent Bloomberg article exposed a “markup of five times Walton’s own price wasn’t unusual across hundreds of properties. In one 2008 investment vehicle, Walton bought 304 acres northeast of Atlanta at a price of $13,600 an acre in U.S. dollars, and syndicated it to investors at about $68,000 an acre.” In other words, Walton is sure to profit on its own deals by selling properties it bought for way cheaper to ignorant retail investors for many times the properties’ actual value. In addition, broker’s are paid huge commissions to never reveal these facts to their clients and get their “cut” of the land fraud. “Walton also was paying sales commissions as high as 13.25% in some cases, even though 6% is more typical for speculative investments, securities experts say.”