FINRA Reportedly Censures and Fines BD4RIA Inc. for withholding Material information involving GPB Holdings II LP
According to The Financial Industry Regulatory Authority (FINRA) on March 18, the regulator has reportedly censured and fined BD4RIA Inc. $45,000 after the firm allegedly negligently failed to inform seven clients important facts pertaining to a GPB Capital offering. The firm was also reportedly ordered to pay partial restitution of $40,000, plus interest.
Last February we reported that the CEO of GPB Capital Holdings, a New York-based registered investment adviser, and two others were arrested in connection with a massive “Ponzi-like scheme” that allegedly defrauded 17,000 investors across the U.S. out of more than $1.7 billion, according to the U.S. Attorney’s Office for the Eastern District of New York.
According to FINRA, on April 27, 2018, GPB Capital sent a letter to many broker-dealers that sold GPB Capital-related investments, including BD4RIA Inc., allegedly stating that GPB Capital was in the process of registering certain classes of securities issued as limited partnerships, including GPB Holdings II, with the SEC. As part of that process, GPB Holdings II was required to file audited financial statements. The letters purportedly further stated that the delivery of GPB Holdings II’s audited financial statements would be delayed pending the completion of a forensic audit.
While the firm learned of the delays, the firm purportedly sold a limited number of limited partnership interests in GPB Holdings II after that announcement, according to FINRA’s findings.
BD4RIA allegedly sold limited partnership interests in GPB Holdings II totaling $500,000 to 7 investors. The firm reportedly received a total of $40,000 in commissions from these seven sales. BD4RIA representatives allegedly told only one of the seven customers that GPB Holdings II had not timely filed its audited financial statements with the SEC and did not tell any of the customers the reasons for the delay. This was material information that should have been disclosed, according to FINRA.
Potential Lawsuits to Recover Financial Losses
The White Law Group has received numerous calls from investors who suffered losses involving GPB Holdings II LP. To learn more about the firm’s investigation involving GPB Capital, please see:
The foregoing information is all publicly available and provided by the White Law Group. If you are concerned about investments with BD4RIA Inc., the securities attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. For more information, please visit our website, www.whitesecuritieslaw.com.