Articles Tagged with National Securities

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.

Robert Rotunno, a former registered representative with National Securities, has received five customer complaints and one pending customer complaint. He has been accused of engaging in churning, making unsuitable investment recommendations, breaching fiduciary duty, breaching contract, misrepresenting material facts, using margin without authorization, acting negligently, churning accounts and engaging in misconduct involving commission, among other things that are against securities rules and regulations.

Rotunno was registered with American Investment Services in Oklahoma City, Oklahoma from October 1999 until May 2000, Murphy & Durieu in New York, New York from May 2000 until December 2000, Global Capital Securities Corp in Englewood, Colorado from January 2001 until March 2002, Sands Brothers & Co. in New York from April 2002 until August 2004 and Laidlaw & Co in New York from August 2004 until February 2016. He is currently registered with National Securities in New York and has been since January of this year. Please call our Chicago-based securities law firm at 312-332-4200 to speak to one of our attorneys about your options of suing National Securities in the FINRA arbitration forum to recover your losses. The firm may be responsible for them.

Did you lose money with Robert Child of National Securities? If so, the securities attorneys at Stoltmann Law Offices are interested in speaking with you about your options of suing National Securities in the Financial Industry Regulatory Authority (FINRA) arbitration forum. We sue firms on a contingency fee basis so we only make money if you recover yours. National Securities has a duty to reasonably supervise Robert Child, and, if the firm does not, can be held liable for investment losses. Please call 312-332-4200 today. The call is free with no obligation.

Child is accused of making unsuitable investment recommendations, acting negligently, breaching fiduciary duty, and misrepresenting material facts, among other things. These are all against securities rules and regulations. Child was registered with JB Hanauer & Co., Smith Barney, Harris Upham & Co., EF Hutton & Co., Shearson Lehman Hutton, Prudential Securities, UBS Painewebber, and VFinance Investments. He is currently registered with National Securities Corp in Boca Raton, Florida and has been since November 2012. He has 13 customer complaints against him, three of which are currently pending.

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