Registered broker and investment adviser Lee Alan Duckworth allegedly has pending customer disputes brought against him on the allegation of recommending unsuitable investments, including GPB Capital investments, according to Lee Duckworth investigation by investment loss lawyer, Alan Rosca.
Investment loss lawyer Alan Rosca of the Goldman Scarlato & Penny PC law firm is investigating conduct related to the customer dispute instituted against broker Lee Duckworth on the allegation of recommending GPB investments, which the client alleges to be unsuitable.
Lee Alan Duckworth was, and is still in the employment of Triad Advisors LLC, a Financial Industry Regulatory Authority (FINRA) member firm, when he made the alleged investment recommendation in 2015.
Duckworth is allegedly a broker selling GPB investments according to the reports on his FINRA Brokercheck Page. The Lee Duckworth investigation shows that the customer alleges that the investment into GPB Holdings in 2015 as recommended byDuckworth was unsuitable. The client allegedly invested $150,000 in the investments and is seeking the total sum of $150,000 in damages for the investment recommendation in the pending customer dispute.
Founded in 2013, GPB Capital Holdings has offered a wide range of alternative investments providing alternative investments into various sectors including automotive retail, technology enabled services, healthcare and waste management among others. Alternative investments are investments other than the traditional stocks and bonds.
Holdings and/or advisors that sold GPB Holdings to investors are reportedly the subject of various investigations by state and federal regulators since 2018 including the Financial Industry Regulatory and more recently, the Massachusetts Securities Department filed an action.
The GPB Capital Holdings portfolio consists of investment funds including GPB Automotive Portfolio, LP, GPB Cold Storage, LP, GPB Eurobond Finance PLC, GPB Holdings II, LP, GPB Holdings, III, LP, GPB Holdings Qualified, LP, GPB Holdings, LP, GPB NYC Development, GPB Scientific, LLC, GPB Waste Management among others.
The Massachusetts Securities Department commenced an investigation into the firm in 2018 and on May 27, 2020 filed an official enforcement action. The complaint alleged that the GPB defrauded over 180 Massachusetts investors to the sum in excess of $14,000,000 through “false and misleading practices”. The complaint further highlighted that GPB Capital sold its funds by offering high commission to brokerage firms to sell the funds while also utilizing another brokerage firm to draft its key documents and marketing materials.
GPB Capital, in its marketing materials, promised investors a yearly return of 8% to be distributed monthly. The distribution was to be made from the operating profits of the funds. GPB Capital kept paying the returns for a while until it couldn’t and it allegedly resorted to paying the distributions from the funds sources from new investors. This allegedly affected the performance of the various investments and GPB Capital allegedly did not disclose this information.
GPB Capital allegedly did not update its marketing materials to reflect the current financial status which led investors to keep investing based on the old information. This action allegedly reinforces the intention of the firm to make misrepresentations to the public.
It has also been alleged that GPB Capital initially failed to file the required audited financial statements with the SEC in 2018 and has not done so as at the time of this investigation.
According to Lee Duckworth investigation, Duckworth, alongside his brokerage firm, Triad Advisors LLC are part of the long list of broker-dealers that allegedly sold the GPB Capital Holding alternative investments.
Goldman Scarlato & Penny attorneys are currently representing investors in a class action against GPB and its principals. Investors who are concerned they may have suffered losses as a result of investments in GPB are encouraged to call 888-998-0530, email firstname.lastname@example.org, or leave a message through the contact form on this page to discuss their options with an experienced securities attorney. All consultations are free.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints mentioned in this article, unless otherwise indicated.
The Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating conduct related to Lee Duckworth’s customer dispute on the allegations of unsuitable investment recommendation into the GPB Capital Holdings.
The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of conducts related to Lee Duckworth’s customer dispute on the allegations of unsuitable investment recommendation into the GPB Capital Holdings may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at email@example.com, or through the contact form on this webpage.