Shepherd, Smith, Edwards & Kantas: Investor Sues Kalos Capital Over GPB Investments Losses

NEW YORK, June 09, 2020 (GLOBE NEWSWIRE) -- Shepherd, Smith, Edwards, & Kantas (SSEK Law Firm) recently filed another Financial Industry Regulatory Authority (FINRA) arbitration claim against Kalos Capital (Kalos) on behalf of an elderly investor who suffered losses as a result of the unsuitable recommendations and overconcentration of his IRA in GPB investments and other risky securities, including private Real Estate Investment Trusts (REITs) and privately traded securities, by Kalos broker Jason Mosher (Mosher).

According to the lawsuit, Claimant met Mosher, who is a New York-based registered representative, at a dinner seminar for seniors.  He contends that the Kalos Capital broker promised him a low-risk investment strategy that would keep his money safe while providing income and a return of principal. Yet Mosher, who operates his business under the name Sheppard Mosher but is an employee of Kalos, proceeded to employ an overly aggressive strategy that was improperly allocated and unsuitable for an older, conservative, inexperienced investor.  Mosher placed a significant portion of Claimant’s account in GPB Capital Holdings’ private placements along with other risky investments such as privately-traded REITS and other untraded and unregistered products.  As a result of these actions, Claimant suffered significant financial losses.

GPB Capital Holdings, which invests in auto dealerships and waste management, is accused of operating a $1.5B Ponzi scam. The alternative asset firm remains under investigation by the US Securities and Exchange Commission (SEC), FINRA, other regulators, and the Federal Bureau of Investigation (FBI). Meanwhile, at least 60 brokerage firms, including Kalos, earned some $160M in commissions from selling GPB private placements to investors. 

While Mosher isn’t the only Kalos broker to market and sell GPB private placements to investors, the broker-dealer appears to have encouraged its registered representatives to sell these risky investments to customers who have since sustained huge losses. Meantime, Kalos and its registered representatives made money off the transactions through commissions and fees. 

If you are a GPB investor or have a loved one who suffered losses in any GPB-related funds, with Kalos Financial or is subsidiary Kalos Capital, or any of the other firms or products mentioned, please contact SSEK Law Firm today for a free, confidential evaluation of your investments and legal options.

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