Articles Posted in Private Placements

Currently financial advisor Michael Mashak (Mashak), currently employed by brokerage firm Equitable Advisors, LLC has been subject to at least one disclosable event. These events include one customer complaint. According to a BrokerCheck reports most of the recent customer complaints concern either corporate debt securities or alternative investments such as direct participation products (DPPs) like business development companies (BDCs), non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and private placements.  The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high risk, low reward products.

FINRA BrokerCheck shows a pending customer complaint on November 21, 2023.

Claimant alleges REIT purchased was unsuitable.

Currently financial advisor Hans Sharma (Sharma), currently employed by brokerage firm Innovation Partners LLC has been subject to at least one disclosable event. These events include one customer complaint. According to a BrokerCheck reports most of the recent customer complaints concern either corporate debt securities or alternative investments such as direct participation products (DPPs) like business development companies (BDCs), non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and private placements.  The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high risk, low reward products.

FINRA BrokerCheck shows a settled customer complaint on February 24, 2023.

Bought on 12/12/2024, American Realty Capital, hospitality Trust (REIT), Chapter 11 Bankruptcy.

Currently financial advisor James Geake (Geake), currently employed by brokerage firm Madison Avenue Securities, LLC has been subject to at least 3 disclosable events. These events include 3 customer complaints. According to a BrokerCheck reports most of the recent customer complaints concern either corporate debt securities or alternative investments such as direct participation products (DPPs) like business development companies (BDCs), non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and private placements.  The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high risk, low reward products.

FINRA BrokerCheck shows a pending customer complaint on December 11, 2024.

Claimants allege unsuitable recommendations of alternative investments.

Currently financial advisor Michael Tannery (Tannery), currently employed by brokerage firm Independent Financial Group, LLC has been subject to at least one disclosable event. These events include one customer complaint. According to a BrokerCheck reports most of the recent customer complaints concern either corporate debt securities or alternative investments such as direct participation products (DPPs) like business development companies (BDCs), non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and private placements.  The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high risk, low reward products.

FINRA BrokerCheck shows a pending customer complaint with a damage request of $150,000.00 on January 03, 2025.

The statement of claim does not contain any specific information on which investments were not suitable, just that the complexities of the investments were not fully explained, and the risks were not disclosed in a fair and balanced manner (including their illiquidity, lack of transparency and the nature of a complex alternative investment such as a reit).

shutterstock_85873471-300x200According 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.

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shutterstock_128655458-300x200The 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.

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shutterstock_145123405-200x300Advisor 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

shutterstock_176283941-300x200Advisor 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]

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shutterstock_190371500-300x200According 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.

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shutterstock_173864537-300x200Advisor 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.

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