Cascade Financial’s Daniel Cantarovici Allegedly Makes Unsuitable UDF, GPB Sales

The Soreide Law Group is reviewing possible investor claims against prior Cascade Financial Management Inc. securities broker Daniel Cantarovici (CRD#: 2557408, Denver, Colorado). Specifically, at least one of Cantarovici’s clients brought a formal dispute about his sales practices and the poor performance of the client’s alternative investments. Supposedly, Cantarovici recommended or sold GPB Holdings I and United Development Funding IV. Here is more on the dispute which suggests Cantarovici made bad investment recommendations and caused the client’s losses.

Cascade Financial Management Client Alleges Cantarovici Sold Bad Investments

Cascade Financial Management Inc. was Daniel Cantarovici’s employer from 2002 to 2017. A customer at that firm brought a complaint about the broker on October 26, 2018. Allegedly, Cantarovici sold the client investments including United Development Funding IV (“UDF IV”), ArciTerra, Walton, VII Peaks, BDCA, and GPB Holdings I and GPB Cold Storage. Allegedly, Cantarovici failed to perform due diligence on investments before he made recommendations for the client to purchase them. Supposedly, Cantarovici also failed to have a reasonable basis to believe that his recommendations would be suitable for this client. It appears that the investments poorly performed. For that reason, the client demanded $442,000 in compensation. Apparently, no further action has been taken since the client’s complaint.

Daniel Cantarovici Allegedly Recommends GPB Funds To Investors

A number of other investors could have received bad recommendations from Daniel Cantarovici regarding GPB Funds. Apparently, GPB has accumulated $1.8 billion+ largely through the sale of private placements. GPB is under FBI, SEC and FINRA investigations concerning, among other things, the veracity of its disclosures to investors about fund performance and capital distributions. Allegedly, investors received substantial returns that were founded on false financial data. GPB funds possibly recommended by Cantarovici include GPB Cold Storage LP, GPB Automotive Portfolio LP, GPB Holding LP, GPB Holdings II LP, GPB Holdings III LP, GPB Eurobond Finance PLC, GPB NYC Development LP, GPB Waste Management LP, and GPB Scientific LLC.

United Development Funding (UDF) Settles SEC Allegations By Paying $8,200,000

Allegedly, Daniel Cantarovici also recommended UDF IV to one or more investor. Namely, the Securities and Exchange Commission (“SEC”) charged United Development Funding, III, LP and United Development Fund, IV – publicly-traded investment funds that deploy investor capital as loans to land developers and homebuilders – as well as four executives (Hollis M. Greenlaw, Theodore F. Etter, Benjamin L. Wissink and Cara D. Obert) with misleading investors regarding the use of UDF monies in violation of Section 17 of the Securities Act.

Apparently, investors purchased UDF based on UDF advertising it could pay 9.75%+ in annualized returns and make regulator distributions. UDF reportedly failed to inform investors that it did not possess the cashflow to support distributions from UDF III. Apparently, funds raised for UDF IV that were meant for development projects were inappropriately allocated to UDF III so that the distributions could be made.  Evidently, Greenlaw, Etter, Wissink and Obert acquiesced to paying $8,200,000 in civil penalties and disgorgement to settle the SEC’s allegations.

Did You Suffer Losses By Investing in GPB Capital Holdings Because Of Daniel Cantarovici?

Lars Soreide Highest Ethical Standard Award 2018

Lars Soreide Highest Ethical Standard Award 2018

Have you experienced losses by investing in GPB Capital Holdings or other investments because of Daniel Cantarovici? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.