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Zamansky LLC Investigates FSC Securities, Royal Alliance, SagePoint Financial, and Woodbury Financial Over GPB Automotive Disclosure Failures

January 11, 2023 Investigations

The law firm is investing in FSC Securities, Royal Alliance, SagePoint Financial, and Woodbury Financial for disclosure failures concerning GPB Automotive due to potential investment fraud.   

On November 30, 2022, the Financial Industry Regulatory Authority (FINRA) found, in a regulatory proceeding, that FSC Securities, Royal Alliance, SagePoint Financial, and Woodbury Financial negligently failed to disclose to investors that GPB issuers failed to timely make required filings with the Securities and Exchange Commission, including filing audited financial statements. These firms were each censured and fined.

In 2013, GPB Automotive Portfolio, LP (GP Automotive) was formed to acquire and operate automotive dealerships.  GP Automotive was a limited partnership that had New York-based GPB Capital as the general partner and was sold pursuant to Regulation D of the Securities Act of 1933.  Brokerage firms FSC Securities, Royal Alliance, SagePoint Financial, and Woodbury Financial were required to conduct due diligence before selling GPB offerings to investors.

According to FINRA, FSC Securities, Royal Alliance, SagePoint Financial, and Woodbury Financial sold GP Automotive to investors without advising them the company had not filed updated financial statements.  FINRA found that these brokerage firms had received a letter notifying them that audited financial statements were delayed by a forensic audit after allegations were made in a lawsuit by a former partner that certain financial statements were falsified.  FINRA found that the failure to notify investors of the audit was material.  

The law firm is investigating claims by investors in GPB Automotive for investment fraud, unsuitability, negligence, and misrepresentation against brokerage firms that sold these investments.  In February 2021, the SEC filed a complaint against GPB Capital and other defendants, alleging, among other things, that the defendants engaged in securities fraud in violation of Section 10(b) of the Securities Exchange Act of 1934 and the United States Department of Justice also brought criminal charges against GPB Capital’s founder and CEO and two other executives, charging, among other things, securities fraud, mail fraud, and wire fraud.

Contact Investment Fraud Attorney Jake Zamansky Today

If you have investment fraud losses from investing in GPB Automotive, please call investment fraud attorney Jake Zamansky at (212) 742-1414 or email jake@zamansky.com for a free evaluation of your potential legal rights.

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