id Madison Avenue’s Gary Mastrodonato Misrepresent Your Investments?
Soreide Law Group is evaluating possible investor claims against prior Madison Avenue Securities, LLC securities broker Gary Mastrodonato (CRD#: 723366, Oriental, North Carolina). Evidently, the securities broker made five disclosures on FINRA BrokerCheck which includes a regulatory sanction, two employment terminations and two client disputes. Notably, the client disputes suggest that Mastrodonato sold investors misrepresented and unsuitable investments. Read on to learn more about the allegations against Mastrodonato.
Madison Avenue, Resource Horizons Group, LLC Client Alleges Gary Mastrodonato Misrepresented Investments
Apparently, Gary Mastrodonato worked for Madison Avenue Securities from August 2017 to January 2019. Evidently, a client of both Madison Avenue Securities and Resource Horizons Group brought FINRA Arbitration #: 19-00681 on March 11, 2019. Allegedly, Mastrodonato falsified information or failed to disclose information regarding the liquidity of American Realty Company. Apparently, Mastrodonato’s misrepresentations induced the client’s purchase of American Realty Company. Not only that, but the client claimed that Mastrodonato gave bad or negligent investment advice, failing to take into account the client’s liquidity needs. It appears that the client specifically asked for a liquid, short-term investment but Mastrodonato sold an illiquid investment. In addition, the client alleged that Mastrodonato breached a fiduciary duty, failing to place the client’s interests first. For these reasons, the client alleged $61,348 in damages. This matter is ongoing.
Kalos Capital Client Alleges Mastrodonato Churned Investments
A client of Kalos Capital – Gary Mastrodonato’s employer from October 2014 to August 2017 – brought a formal complaint about him. Mainly, the client alleged that Mastrodonato churned the client’s annuities. Supposedly, Mastrodonato propositioned an exchange of the client’s annuity which caused the client to incur hefty surrender charges. Because of this, the client asked for compensatory relief. FINRA BrokerCheck shows that the client took no action on this matter since May 26, 2017.
FINRA Orders Gary Mastrodonato To Pay $10,000 Fine For Circumventing Principal Review
Evidently, Gary Mastrodonato’s previous employer, Securities America, Inc., disaffiliated with him for violating the firm’s directives and policies. Subsequently, FINRA issued Mastrodonato a suspension and $10,000 fine for submitting annuity exchanges directly to annuity sponsors. Supposedly, Mastrodonato knew that his actions resulted in him bypassing the firm’s supervisory procedures which governed, among other things, suitability of the client’s transactions.
Mastrodonato Possibly Recommended, Sold GPB Funds
Sources suggest that investors could have received recommendations from Gary Mastrodonato to invest in GPB Capital Holdings Funds. Significantly, 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.
Notably, GPB just announced further delays to the company’s release of audited financial statements. Evidently, investors have been seeking them since early 2018. Apparently, GPB was supposed to provide these statements by December 31 in reference to two or more of its funds including GPB Holdings II and GPB Automotive Portfolio.
In addition, myriad lawsuits against GPB allege that it operated a Ponzi scheme relating to its private placements. Worse yet, it appears that investors cannot sell their investments in the secondary market or otherwise redeem or liquidate their investments.
GPB private funds possibly recommended by Mastrodonato 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.
Securities brokers such as Gary Mastrodonato are responsible for ensuring that private placements that they recommend are suitable for investors. Not only that, but the securities brokers must conduct due diligence on those speculative investments before making recommendations. It is possible that Mastrodonato gave bad advice to a number of investors about GPB Capital Holdings notes.
Did You Suffer Losses By Investing in GPB Capital Holdings Because Of Gary Mastrodonato?
Have you experienced losses by investing in GPB Capital Holdings or other investments because of Gary Mastrodonato? 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.