The broker is currently involved in a customer dispute alleging unsuitable investments in GPB Capital which caused significant losses.
The Sonn Law Group is investigating allegations of unsuitable investments in GPB Capital by Oregon broker Robert S. Smith. Under FINRA Rules, brokerage firms may be held liable for their brokers’ misconduct and investors may be able to investment losses through FINRA arbitration. Contact Sonn Law Group today or call us at 866–827–3202 for a free consultation.
Peregrine Private Capital broker Robert S. Smith (CRD#: 1412333) is currently involved in a $1.1 million customer dispute regarding recommendations of GPB Capital private placements.
GPB private placements have been at the center of controversy since Sept. 2018, when the Massachusetts Securities Enforcement division opened an investigation after a number of GPB investors alleged unsuitability and high losses.
The U.S. Securities Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), along with the Federal Bureau of Investigation, are currently investigating 63 brokerage firms on record that sold GPB-controlled partnerships.
Private placements are high-end, high-risk investments that are not suitable for all investors.
Only “accredited investors” — wealthy individuals with an annual income of $200,000 or more or a net worth of $1 million or more — are allowed to invest in private placements, also known as “alternative” investments. Private placements can yield high returns, but they also come with significant risk.
Over 60 broker-dealers, including Concorde Investment Services, Purshe Kaplan Sterling, Woodbury Financial Services, SagePoint Financial, Royal Alliance Associates, and others, have sold GPB funds. Reportedly questions are now being raised whether any of these firms knew about the private placements even as they were selling them to investors.
According to Smith’s BrokerCheck report, Smith has 32 years of industry experience, and has been registered with seven firms, including: Concorde Investment Services of Lake Oswego, OR, (2011-present); Pacific West Securities of Beaverton, OR (2007–2011); Brookstreet Securities Corporation of Beaverton, OR, (1996–2007); Toluca Pacific Securities of Burbank, CA (1995–1996); Allmerica Investments of Worcester, MA (1993–1994); A.G. Edwards & Sons of St. Louis, MO (1990–1993); and Merrill Lynch, Pierce, Fenner & Smith of New York, NY, (1985–1990).
Smith has four disclosures in his FINRA record.
- July 2019 — Pending: Client is alleging unsuitability and negligence relating to private placement investments made in 2015–2017. Client is requesting $1,100,000.00 in damages. Smith stated on record that the client had a prior history of private placement investments.
- On April 15, 2013, a client alleged misrepresentation, unsuitability, and breach of fiduciary duty in relation to investments made in 2008, and sought $85,000 in damages. The matter was settled for $27,000.
- Two other disputes from 2010 and 2011 were closed with no action.
Jeffrey R. Sonn is an experienced investor losses attorney. If you suffered losses because your financial advisor recommended unsuitable investments, Mr. Sonn can help you recover losses. Please do not hesitate to contact the Sonn Law Group today for a free review of your claim.