Articles Tagged with Geneos Wealth Management

The news continues to get worse for the thousands of retail investors with money locked-up in various GPB Capital Funds. Those funds include the GPB Automotive Fund, GPB Waste Management Fund, and GPB Fund II, amongst others. Stoltmann Law Offices has been investigating these funds for several months. We have filed roughly two dozen FINRA Arbitration claims on behalf of our clients to recover their losses in these funds from the brokerage firms responsible for soliciting them to invest in these ill-fated private placements.

On November 22, 2019, GPB sent a letter to their “partners” informing them of some really bad news.  The recent indictment of GPB Capital’s Chief Compliance Officer by the United States Attorney for the Eastern District of New York for obstruction of justice, amongst other claims, has caused the auditing process to fall off the rails. All of those promises by GPB to investors, all of those promises repeated by financial advisors to their clients, that GPB was well on its way to finally providing restated, audited financial statements, have officially been broken. The letter states that GPB’s auditor has “decided to suspend work on outstanding financial statement audits. In addition, the Audit Committee has elected to resign effective ups the earlier of the completion of the Rosenberg Investigation or by November 27, 2019.” The “Rosenberg investigation” is the self-implemented third party investigation into how the company’s CCO obstructed justice, and what GPB knew and when it knew it. Well, according to the indictment, detailed on this blog last month, GPB hired the CCO with knowledge that he had confidential information obtained from his participation in the SEC’s investigation of GPB. They knew he had  obtained information from the SEC in the course of its investigation, it would seem, and GPB made him their chief compliance officer.

The November 22, 2019 notice also eviscerates another false narrative promoted by GPB and passed along to clients by financial advisors, who are scrambling at this point to come up with excuses.  Despite operating in a red-hot economy where car sales are through the roof, the GPB Automotive Fund has managed to lose over $200 million and GPB Holdings II has lost roughly $125 million.  To add insult to injury to the investors stuck holding this rapidly depreciating asset, GPB is not allowing investors to unload their units on secondary markets.  Unfortunately for investors, this is what a Ponzi scheme looks like when it is no longer able to attract new investor money.

Stoltmann Law Offices is investigating Sheldon J. Harber, who recently entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA). He is accused of participating in private securities transactions by investing, and facilitating investments for six other investors, in a private company between January 2013 and August 2014. He invested a total of $435,000 in the private company through his company, Aisle411 Inc. which he started. This is commonly referred to as “selling away” and is used to garner large commissions for the broker. It is against securities rules and regulations.

Harber was registered with Manequity Inc. from June 1979 until July 1980, Chubb Securities from April 1980 until March 1988, Transamerica Securities in Los Angeles, California from March 1988 until May 1993, Transamerica Financial Resources in Los Angeles from March 1988 until May 1993, FSC Securities in Atlanta, Georgia from May 1993 until November 2002, Cambridge Investment Research in St. Louis, Missouri from November 2002 until September 2014 and Geneos Wealth Management in St. Louis from August 2014 until January 2016. He has one customer dispute against him and he is not licensed within the industry. You may be able to sue Geneos Wealth Management for financial losses. Please call our securities law offices to find out how.

Stoltmann Law Offices is investigating Gary Arford, who was accused by the Securities and Exchange Commission (SEC) of making misrepresentations in connection with a private fund that he managed, and making misrepresentations about investments in hotels in the Seattle are. Allegedly, between December 2010 and October 2013, Arford managed a private fund in the Seattle, Washington area. He claimed to invest in real estate ventures. He allegedly defrauded investors in his fund by recommending they invest $4 million in an undeveloped Seattle hotel by misrepresenting the hotel’s debt and encumbrances on the property, by taking possession of the undeveloped land to use for collateral on personal loans, by hiding information regarding the use of the fund’s assets and status of the hotel’s development and misappropriating the fund’s assets.

Arford was registered with the following firms: CUNA Brokerage Services, Allmerica Investments, IDS Life Insurance Company, American Express, Raymond James, Commonwealth Financial Network, Geneos Wealth Management and Independent Financial Group in Lynnwood, Washington from November 2013 until March 2014. He has 10 customer disputes against him, four of which are currently pending.

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