Brokerage Firm Royal Alliance Associates Hit with $1 Million Arbitration Complaint Over Investment with GPB Capital Holdings

Former customer alleges money loss from unsuitable investments

Sonn Law is investigating Royal Alliance Associates for recommending funds sold by GPB Capital Holdings. We represent investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 866–827–3202, or complete our contact form for a free consultation.

Brokerage firm Royal Alliance Associates, Inc. was recently hit with a $1 million FINRA arbitration claim by a former customer alleging money lost from unsuitable investments with GPB Capital Holdings. More specifically, the complaint alleges hat Royal Alliance concentrated the investor’s money into funds managed by GPB Capital.

GPB Capital is a New York-based investment firm that offered unregistered and high-risk private-placement securities through a number of individual limited partnerships. The firm was launched in 2013 and got its start purchasing auto dealerships.

Earlier this year, the firm reported major losses of approximately 25% and 39% in its two largest investment funds, which collectively held approximately $1.2 billion of investors’ money. GPB Capital funds were sold through more than 60 independent broker-dealers.

In a lawsuit filed against the firm, it is alleged that GPB Capital was en elaborate Ponzi scheme. In addition, the lawsuit claims that several of GPB Capital’s controllers engaged in overbilling, made significant personal expenses to the company, and misreported the actual purchase price of the dealerships the firm purchased for its funds.

Several other organizations, including the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and the Massachusetts Secretary of the Commonwealth are conducting investigations into GPB Capital. The FBI also reportedly made an unannounced visit to GPB Capital’s offices in February 2019.

Jeffrey R. Sonn is an experienced investor losses attorney. If you suffered losses because a financial professional or corporate executive misappropriated funds, Mr. Sonn will protect your rights and interests. Please do not hesitate to contact the Sonn Law Group today for a free review of your claim.