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

I just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!

David Y

LATEST NEWS AND ARTICLES

February 5, 2026
FINRA Fines Broker-Dealer for Repeated Form CRS Disclosure Failures

The Financial Industry Regulatory Authority (FINRA) fined VSI Securities Inc., formerly known as Venecredit Securities Inc., $20,000 for failing to accurately disclose the firm’s disciplinary history in its customer relationship summary, known as Form CRS.

February 4, 2026
Investor Redemptions Rise in Nontraded BDCs Amid Credit Concerns

Financial advisors and their clients have increased redemptions from nontraded business development companies (BDCs) following a series of high-profile corporate bankruptcies, according to InvestmentNews. The surge highlights growing investor concern about liquidity and credit exposure within these high-yield but often risky investment ...

February 3, 2026
FINRA Accuses Spartan Capital of Widespread Churning That Allegedly Harmed Customers

The Financial Industry Regulatory Authority (FINRA) has brought a disciplinary complaint against Spartan Capital Securities and several senior leaders of the New York City–based broker-dealer, alleging that the firm facilitated excessive trading that generated millions of dollars in revenue while causing substantial losses to customers.