Christopher Shaw, Formerly of Kalos Capital, Facing Customer Dispute Concerning Sale of GPB Capital Investments

Shaw was named in a dispute seeking $350,000 in damages over alleged unsuitable investments in GPB Capital.

The Sonn Law Group is investigating allegations that Christopher Shaw recommended investments in GPB Capital Holdings. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Christopher Shaw - Kalos CapitalChristopher Shaw (CRD#: 5011382) is currently employed by Pruco Securities in Charlotte, North Carolina. Previously, he was registered with Kalos Capital in Belmont, North Carolina from September 2011 until May 2019. 

According to his BrokerCheck report, Shaw was the subject of two customer disputes in 2019. The most recent was filed in November of 2019. The client alleged breach of fiduciary duty and unsuitable investments. The client is seeking $350,000 in damages. The matter is still pending.

In July 2019, Shaw was named in an additional customer dispute. In that dispute, the client alleges unsuitable investments in alternative securities between November 2012 and May 2017, while Shaw was employed with Kalos Capital. This client is seeking $450,000 in damages and the matter is still pending. 

On March 3, 2020, the law firm of Shepherd, Smith, Edwards & Kantas (“SSEK”) filed a GPB fraud case on behalf of an elderly investor who suffered losses over $250,000. The claimant, who is in her seventies and works in a nursing home, stated that she had no prior investing experience. She trusted Shaw, first while he was at Kalos Capital, and continued to do so when he moved to Pruco Securities, to handle her retirement savings. She made it clear to shaw that she needed liquidity and did not want to take risks that could lead to the loss of her savings.

According to the claimant, Shaw represented himself as an expert in conservative investments and told her that he would employ a “conservative risk strategy” when handling her funds. Despite these assurances, he used an aggressive strategy which included allocating her assets and concentrating her entire portfolio in private placements, including $250,000 in GPB funds – GPB Holdings II and GPB Waste Management. 

GPB Capital has recently missed multiple SEC filing deadlines. Their offices were raided by the FBI earlier this summer, and they are the subject of multiple lawsuits alleging various levels of misconduct. The SEC has yet to formally file against GPB Capital, but some speculate that they could do so soon. 

GPB Capital Holdings is a New York-based investment firm that offers exempt, private-placement securities. These investments inherently have a high degree of risk due to their nature as unregistered securities offerings (and without regulatory oversight). The investment firm raised $1.8 billion from investors through private placements that invested in automotive dealerships, the waste management industry, and middle-market lending. These investments were high risk and high commission (nearly 8%) private placements.

GPB Capital has been embroiled in legal disputes in the recent past. In November 2019, GPB informed investors that they would not be supplying the audited financial reports by their deadline, even though investors have been awaiting the audits since April. 

In June 2019, GPB Capital Holdings reported losses in the value of two of its investment funds: GPB Holdings II and GPB Automotive Portfolio. GPB Holdings II saw a decline in value of 25.4% and GPB Automotive Portfolio have decreased by 39%. GPB Holdings II and GPB Automotive Portfolio make up the majority of GPB Capital Holdings’ portfolio, raising $1.27 billion from investors.

GPB Capital Holdings manages the following nine private placements:

GPB Capital Holdings’ other funds also reported declines in an estimated value of 25% to 73%.

Contact Us Today

The Sonn Law Group is currently investigating allegations that brokers recommended investments in GPB Capital Holdings. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.