FINRA Penalizes Center Street Securities Over Improper GPB Private Placement Sales

Posted on January 11th, 2023 at 1:41 PM
FINRA Penalizes Center Street Securities Over Improper GPB Private Placement Sales

From the Desk of Jim Eccleston at Eccleston Law.

The Financial Industry Regulatory Authority (FINRA) has imposed a fine on Center Street Securities after the financial advisory firm improperly sold GPB private placements.

In total, FINRA now has penalized at least seven financial advisory firms since December 2022 for improper GPB private placement sales. According to FINRA, Center Street Securities failed to inform nearly 20 investors that GPB had failed to submit its required filings, including audited financial statements, with the Securities and Exchange Commission (SEC). Even though Center Street received an announcement from GPB Capital regarding the delays, Center Street preceded to sell 16 limited partnership interests in Automotive Portfolio and four limited partnership interests in Holdings II, according to FINRA.
FINRA determined that the sales, which totaled $1.2 million, occurred between May 2018 and June 2018. Center Street collected at least $98,727 in commissions from the improper GPB sales, according to FINRA. Center Street consented to a $70,000 fine and partial restitution of $89,652 without admitting or denying any of FINRA’s investigatory findings in the Acceptance, Waiver and Consent (“AWC”).

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, finra

Return to Archive

TESTIMONIALS

Previous
Next

If the regulators are after you, and are trying to make a case against you, and you are going to contest their allegations against you, make sure you have the best securities industry defense lawyers, Eccleston Law Firm. My case was spun into a combination of penalties including fines, cash settlements, CE courses and suspension. They were the best I have seen in action. When all was said and done, they had done their magic, my situation was negotiated and settled with a simple "letter of caution" and a case closed without action. It is the most important legal business decision you will ever make, make it Eccleston Law.

Rick R.

LATEST NEWS AND ARTICLES

September 16, 2025
Former Morgan Stanley Advisors Win Partial Court Victory in Client Solicitation Dispute

Two former Morgan Stanley advisors in Hackensack, New Jersey have defeated Morgan Stanley’s initial effort to block them from soliciting clients, according to an August 15 order from New Jersey Superior Court.

September 15, 2025
California Young-Gun Investor Charged in Alleged $6 Million Ponzi Scheme

Federal prosecutors have accused Mihir Deepak Sukthankar, a California resident once celebrated as a teenage trading “prodigy,” of orchestrating a multi-million-dollar Ponzi scheme.

September 12, 2025
LPL Broker Fined and Suspended for Recommending Risky Investments to Elderly Client

An LPL Financial broker in Elizabethtown, Kentucky, has agreed to sanctions after FINRA found he violated Regulation Best Interest (Reg BI) when recommending unsuitable investments to an elderly customer.