NASHVILLE, Tenn., Sept. 17, 2019 (GLOBE NEWSWIRE) -- The law firm of Shepherd, Smith, Edwards & Kantas (“SSEK Law Firm”) has filed another case against Kalos Capital (“Kalos”) for one of their registered representatives pushing clients into private placements, most notably GPB Capital. According to the complaint filed with FINRA, Hunter McFarlin, who has been registered as a representative of Kalos since 2013, placed all of the capital of one of his customers in illiquid private investments, including $50,000 in GPB Capital. Initially, the investments were paying the investor almost $2,000 a month in income and retained their value. Now, however, the investments pay less than a quarter of that amount and have lost more than $150,000 in value.
This is one of several cases where SSEK Law Firm is representing an investor against Kalos. It appears from SSEK’s investigation that Kalos was encouraging its representatives from all over the country, not just in Nashville, to sell expensive and illiquid private placements to customers where such investments were clearly unsuitable and, according to the investors SSEK has interviewed, often misrepresented.
GPB Private Placements Funds
Although not the only private placement involved in SSEK’s most recent case, GPB is once again a part of the suit. GBP Capital Holdings is an alternative asset manager that invests in waste management and car dealerships. The private placement issuer is under investigation by FINRA, the SEC, the FBI and several state regulators. According to GPB, it raised $1.8 billion from investors and reportedly paid out more than $165 million in commissions from the GPB sales. Unfortunately, the value of GPB’s Funds have dropped dramatically in recent months as the company continues to miss filing deadlines.
Private Placement Lawyers
Please contact the SSEK Law Firm if you suffered losses from investing in a GPB private placement fund, or any other private placement, that was recommended to you through Kalos Capital, Hunter McFarlin, or through another brokerage firm and/or financial adviser. Our lawyers represent investors whose brokers and their firms inappropriately recommended investments to them, such as GPB Capital. Contact SSEK Law Firm to request your free, no obligation case consultation.
Contact Info: 800-259-9010
Sam Edwards: sedwards@sseklaw.com
Ryan Cook: rcook@sseklaw.com