Triad Advisors was also fined $150,000 by FINRA for supervisory failures.
On February 9, 2021, Triad Advisors signed an Acceptance, Waiver & Consent (AWC) agreeing to pay a $150,000 fine and $43,998.48 in restitution. Triad Advisors consented to findings that it failed to establish and maintain a reasonable supervisory system to achieve compliance with suitability requirements regarding switching and short-term trading of Class A share mutual funds and failed to supervise such trading.
According to FINRA’s findings, between July 2015 and July 2017, a Triad registered representative carried out short-term purchase and sale transactions of Class A share mutual funds in 10 customer accounts, which resulted in losses in 9 of the accounts. The losses totalled $43,998.48. The transactions were determined to be unsuitable in the accounts in which they were executed.
Triad Advisors has also been named in six arbitration complaints involving GPB Capital investment recommendations seeking damages of over $1.5 million, collectively. Many broker-dealers, including Triad Advisors, improperly recommended GPB private placements to investors, generating considerable commissions. Oftentimes, the risks of these investments were never fully disclosed to the customers.
In February 2021, the SEC charged GPB Capital and three of its executives with operating a Ponzi-like scheme that raised over $1.7 billion from investors. GPB Capital is a defendant in numerous other lawsuits and is also under investigation by the FBI.
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.