Some Brokers Sold GPB Private Placements Allegedly with the Worst Wall Street Tactics

Posted on February 26th, 2021 at 1:32 PM
Some Brokers Sold GPB Private Placements Allegedly with the Worst Wall Street Tactics

From the Desk of Jim Eccleston at Eccleston Law LLC:

According to news sources, some brokers arranged lavish client dinners and purchased private suites at Madison Square Garden to promote and sell $1.8 billion in private placements managed by GPB Capital. Last month, the Justice Department accused GPB Capital of running a Ponzi scheme. 

The tactics also included claims that there was a  connection between GPB and Merrill Lynch to entice investors. The brokers provided marketing materials touting this false connection. According to marketing materials, other advisor firms promoted events, including dinners and private suites, connected to Ascendant, the GPB private placements' lead wholesaler.When asked about GPB, a Merrill Lynch spokesperson said the firm was not aware of any connection.

 There was no shortage of advisors grabbing the attention of investors to push the product. GPB enticed investors with promises of monthly distributions covered by funds from the investments and not drawn from underlying invested capital. According to news sources, all the returns paid out to investors were their own money.

Tags: eccleston, eccleston law, gpb capital, bad tactics

Return to Archive

TESTIMONIALS

Previous
Next

You are the best attorneys in the country.

CC

LATEST NEWS AND ARTICLES

June 14, 2024
Wells Fargo Fires Employees for Faking Work

Wells Fargo & Co. recently terminated over a dozen employees following an investigation into allegations of fake work activities.

June 13, 2024
FINRA Struggles to Revise Outside Business Rules

The Financial Industry Regulatory Authority’s (FINRA) attempt to update its rules on advisors’ outside business activities has stalled, according to Robert Colby, FINRA's chief legal officer.

June 12, 2024
Tax Court Denies Madoff Victims $8.2 Million Deduction

Victims of Bernie Madoff's Ponzi scheme, Christopher and Silvana Pascucci, cannot claim an $8.2 million tax deduction for their investment in life insurance premiums.