Joshua Stivers, Kalos Capital Broker, Hit with Arbitration Claim Over Recommendation to Invest in Unsuitable GPB Capital Funds

GPB Capital is currently under investigation by the FBI, SEC, and MA Securities Division. It is alleged to be a Ponzi scheme.

Sonn Law is investigating Kalos Capital and Broker Joshua Stivers. 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.

Joshua Stivers (CRD# 5708565) is a currently registered broker and investment advisor with Kalos Capital, Inc., based in Austin, Texas. Recently, a FINRA arbitration claim was filed against Mr. Stivers and Kalos Capital related to the recommendation to invest in limited partnership funds offered by GPB Capital Holdings.

GPB Capital is a New York-based investment firm that offers unregistered and high-risk private-placement securities through a number of individual limited partnerships. Earlier this year, it reported major losses 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.

Prior to his registration with Kalos Capital, Mr. Stivers was a representative with G.F. Investment Services, LLC from 2014 to 2017, according to his BrokerCheck profile. There are two disclosures, including one tax lien for $139,842 and one financial issue, which was resolved with a compromise.

Investors who lost money because of unsuitable recommendations may be able to recover some or all of their investment through FINRA arbitration. The regulator’s rules require brokerage firms to be responsible for their brokers’ activity and may be liable for misconduct, allowing recovery from the broker or the firm.

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.