Former Advisor Sanctioned for GPB Capital Sales

Posted on November 8th, 2023 at 4:16 PM
Former Advisor Sanctioned for GPB Capital Sales

From the desk of Jim Eccleston at Eccleston Law 

The Financial Industry Regulatory Authority (FINRA) has fined and suspended Arni J. Diamond for improperly selling limited partnership units in GPB Automotive Portfolio LP and GPB Waste Management LP.

FINRA reported that between November 2014 and March 2018, Diamond made inappropriate investment recommendations in speculative alternative investments to two clients, contradicting their investment profiles. The initial client, a 67-year-old individual who did not qualify as an accredited investor due to insufficient annual income and net worth placed a $50,000 investment in the Automotive Portfolio in June 2015. The second client, in his early sixties with a moderate risk tolerance, invested a total of $200,000 in GPB Capital limited partnership interests within the same time frame.

FINRA has sanctioned over a dozen broker-dealers for engaging in similar alleged misconduct regarding the sale of GPB offerings. According to DIWire, Diamond agreed to a four-month suspension from all roles associated with FINRA members and a $5,000 fine.

 

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

Tags: eccleston, eccleston law, finra

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