Have you suffered significant losses as a result of an investment in a private placement with G.Research Inc? If so, The White Law Group may be able to recover your investment losses.
According to a Letter of Acceptance, Waiver and Consent (case #2009017326901), G.Research Inc (formerly Gabelli & Company) agreed to a $1 million dollar fine with the Financial Industry Regulatory Authority (FINRA) to settle allegations of inadequate supervision of the formation, operation, marketing , and sales of private investment partnerships by G.Research registered representatives. Between at least 2001 and 2008, G. Research raised approximately $36 million from more than 100 investors involving the private partnerships connected to FINRA’s investigation
Formed in 1976, G.Research Inc is headquartered in New York with several branch offices throughout the US. The firm is registered to sell securities in 53 states and territories.
G.Research admitted to FINRA’s findings that their written supervisory procedures (WSPs) governing the private partnerships that were formed by registered representatives were not adequately designed to achieve compliance with securities laws and FINRA rules.
The private partnerships were allegedly structured similar to hedge funds, making them very high risk. According to FINRA, G. Research failed to maintain a WSPs that enforced adequate supervision regarding due diligence related to these hedge funds and funds of hedge funds. In addition, the WSPs did not provided guidance to regarding the relative fees charged by the private partnership.
Furthermore, the private partnerships purportedly used materials that did not comply with advertising rules. As such, G Research failed in their obligation to supervise the advertising and sales material of the private partnerships. The marketing material lacked sufficient disclosures regarding the risks of investing, including potential loss of principal, concentration of investment, leverage, management fees, lack of liquidity, and conflicts of interest between the manager and the investors. In addition, the marketing material allegedly contained misleading statements that project future performance and exaggerated claims.
If you suffered significant losses as a result of a private partnership you purchased from G.Research and would like to discuss your litigation options to recover your investment losses, please call the White Law Group at 312-238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.