The Financial industry Regulatory Authority (“FINRA”) reports troubling allegations of sales practice violations by Royal Alliance Associates financial advisor Gary Ginsberg (CRD#: 1175258, New York, New York). Evidently, the securities broker, who joined Royal Alliance Associates, Inc. in 1992, received sanctions for unauthorized transactions. Not only that, but two of his clients disputed his sales practices. Here is a brief summary of the allegations against Ginsberg:
Royal Alliance Client Alleges Gary Ginsberg Sold Unsuitable Real Estate Security
A client of Royal Alliance Associates contested Gary Ginsberg’s sales practices through bringing FINRA Arbitration #: 19-01394 on May 22, 2019. Namely, the client alleged that Ginsberg exposed him to unreasonable and unwanted risk. This means that Ginsberg potentially gave the client unsuitable investment recommendations. Potentially, he failed to consider the client’s risk tolerance when selecting investments for the client’s portfolio. Because of Ginsberg’s allegedly unsuitable transactions, the client demanded $151,700 in damages in this ongoing matter.
Ginsberg Allegedly Makes Unauthorized Transaction Causing Increased Tax Liability For Client
Evidently, a second Royal Alliance Associates client brought FINRA Arbitration #: 13-00390 to challenge Gary Ginsberg’s unauthorized transactions. Namely, the client alleged that Ginsberg failed to follow the client’s instructions, instead setting up an account that the client never asked for. By executing investment transactions in that account, the client experienced unspecified tax liabilities. For this reason, Royal Alliance opted to settle the matter by compensating the client to the tune of $30,000.
Gary Ginsberg May Have Recommended Or Sold GPB Funds
Sources suggest that investors could have received recommendations from Gary Ginsberg to invest in GPB Capital Holdings Funds. GPB Capital Holdings, which has accumulated $1.8 billion+ largely through the sale of private placements, is facing FBI, SEC and FINRA investigations concerning, among other things, the veracity of its disclosures to investors about fund performance and capital distributions. Apparently, its CCO, Michael Cohn, has been charged with obstructing an SEC investigation.
2019 Class Action Lawsuit Against GPB
Not only that, but in 2019, investors lodged a class action lawsuit in an Austin, Texas federal court against GPB Capital Holdings alleging, among other things, conflicts of interest, self-dealing and a Ponzi scheme. To run the supposed scheme, GPB allegedly created sophisticated holding companies and used error-ridden accounting and auditing procedures. Apparently, a number of funds are named as defendants in the class action lawsuit along with David Gentile – GPB Capital Holding’s founder. Allegedly, investors were persuaded to invest in GPB through being promised eight percent returns. However, GPB allegedly failed to generate the returns through proper business channels. Instead, the company used investor capital, according to the lawsuit.
Did You Suffer Losses By Investing in GPB Capital Holdings Because Of Ginsberg?
Did you experience losses by investing in GPB funds or other investments because of Gary Ginsberg? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your 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.