Investor Alert! The Financial Industry Regulatory Authority (“FINRA”) reports through BrokerCheck that at least three investors disputed the sales practices of securities broker Jingbo Pan (CRD#: 5266959, York, Pennsylvania). Notably, these disputes, filed between September 5, 2019 and October 31, 2019, all concern Pan’s sales practices at International Assets Advisory – a securities firm Pan previously for. Clients’ claims, summarized below, suggest that Pan breached a fiduciary duty and negligently sold or recommended investments.
International Assets Advisory Client Alleges Jingbo Pan Breached Fiduciary Responsibility
Evidently, a client of International Assets Advisory filed FINRA Arbitration #: 19-03141 on October 18, 2019. The client indicated that Jingbo Pan violated a fiduciary responsibility. Allegedly, Pan failed to place the client’s interests first. Secondly, the client alleged that Pan was negligent in his recommendations, sales or administration of the client’s account. Apparently, losses were sustained on direct investments (DPP or LP interests). For this reason, the client demanded $125,000 in damages in this pending matter.
Pan Allegedly Sells Unsuitable Investments To International Assets Advisory Customer
A second client of International Assets Advisory, who also held accounts with Berthel Fisher and Company Financial Services (Jingbo Pan’s prior employer), contested Pan’s sales practices through bringing FINRA Arbitration #: 19-02048 on July 24, 2019. Mainly, the client claimed that Pan sold unsuitable and misrepresented investments. Supposedly, Pan falsified information about DPP or LP interests and real estate securities. Not only that, but the client indicated that Pan invested the client’s assets in a manner which failed to be consistent with the client’s objectives, risk tolerance or general investing circumstances. Also, International Assets Advisory and Berthel Fisher allegedly caused the client’s losses by failing to supervise Pan and for failing to perform due diligence. Because of this, the client demanded $90,000 in damages. Apparently, this claim is ongoing.
Jingbo Pan May Have Inappropriately Recommended, Sold GPB Funds To Investors
Sources suggest that investors could have received recommendations from Jingbo Pan to invest in GPB Capital Holdings Funds. This could have occurred through Pan’s activities when working for International Assets Advisory (2014 – 2018), Axiom Capital Management (2018 – 2019) or Coastal Equities (May 2019 – present).
GPB Capital, which accumulated $1.8 billion+ mainly through sales of private placements, struggled financially in 2019. Specifically, GPB Holdings II declined by approximately 13% in value; GPB Automotive Portfolio dropped 25%; and smaller funds declined in value by up to 73%, the company indicated. Moreover, GPB is subject of FBI, SEC and FINRA investigations regarding the veracity of its disclosures to investors about fund performance and capital distributions. Moreover, dozens of investors brought suit against GPB. Investor lawsuits, which are currently ongoing, allege that GPB operated a Ponzi scheme.
Brokers’ Responsibility To Conduct Due Diligence On GPB Capital Funds Before Making Recommendations
Securities brokers such as Jingbo Pan 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 Pan gave bad advice to a number of investors about GPB Capital Holdings notes and was responsible for causing investors’ losses.
Did You Suffer Losses By Investing in GPB Capital Holdings Because Of Jingbo Pan?
Did you incur losses by investing in GPB Capital Holdings or other investments because of securities broker Jingbo Pan? If you have, reach out to 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.