Registered broker and investment adviser Lee Alan Duckworth is allegedly currently facing a customer dispute action brought against him on the allegation of recommending unsuitable investments related to the GPB Capital investments, according to an investigation by Rosca Scarlato investment misconduct lawyer, Alan Rosca.
Investment fraud lawyer Alan Rosca of the Rosca Scarlato LLC law firm is investigating conduct related to the customer dispute instituted against broker Lee Duckworth on the allegation of recommending GPB investments, which the client alleges to be unsuitable.
Lee Alan Duckworth was in the employment of Triad Advisors LLC, a Financial Industry Regulatory Authority (FINRA) member firm, when he made the alleged investment recommendation in 2015. He was still in the employment of the same firm as at the time the dispute was initiated.
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GPB Unsuitable Investment Recommendations Allegations
Lee Alan Duckworth is allegedly a broker who sold GPB according to the reports on his FINRA Brokercheck Page. According to the investigation, the customer alleges that the investment into GPB Holdings in 2015 as recommended by Lee Duckworth was unsuitable. This was allegedly instituted after the GPB investment suspended distributions. The client alleged invested $150,000 in the investments and is seeking the total sum of $150,000 in damages for the investment recommendation in the pending customer dispute.
GPB Capital Holdings and/or investment advisors who sold this investment have been under investigation by state and federal regulators including the Financial Industry Regulatory Authority and more recently, the Massachusetts Securities Department, which filed an action against the holdings.
GPB Capital Holdings is an investment company reportedly providing alternative investments into various sectors including automotive retail, technology enabled services, healthcare and waste management among others. Alternative investments are investments other than the traditional stocks and bonds.
GPB Capital Holdings reportedly provides investment options by acquiring income producing private companies. These acquisitions are reportedly funded through private placements which are sold to the customers. GPB Capital reportedly achieved this by creating various investment funds including GPB Automotive Portfolio, LP, GPB Cold Storage, LP, GPB Eurobond Finance PLC, GPB Holdings II, LP, GPB Holdings III, LP, GPB Holdings Qualified, LP, GPB Holdings, LP, GPB NYC Development, GPB Scientific, LLC, GPB Waste Management among others.
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Having raised over $1.8 billions from investors, GPB initially came under scrutiny when it announced in 2018 that due to accounting issues, its funds would be suspending dividends and redemption and trading on the shares will not continue until later. This was further aggravated when GPB Capital declared that it would not be able to provide some of the key financial documents required by investors on the GPB Automotive portfolio in time for the tax deadline in 2019.
As stated earlier, on May 27, 2020, the Massachusetts Securities Division, through the Commissioner of State, William Galvin, filed an enforcement action against GPB Capital Holdings. This is coming on the heels of an investigation the commissioner launched into the company in 2018.
The Massachusetts complaint alleged that GPB Capital made material misrepresentations to investors in its funds. It alleged that GPB Capital promised 8% returns on the investment to be paid solely from operational capital and revenue, and it failed to meet such promise.
Broker Lee Duckworth, alongside his brokerage firm, Triad Advisors LLC are part of the many broker-dealers that allegedly sold the GPB Capital Holding alternative investments.
Rosca Scarlato attorneys are currently representing investors in a class action against GPB and its principals. Investors who are concerned they may have suffered losses as a result of investments in GPB are encouraged to call 888-998-0530, email arosca@rscounsel.law, or leave a message through the contact form on this page to discuss their options with an experienced securities attorney. All consultations are free.
Lee A. Duckworth Faces Three Pending Customer Complaints
As of the date of this article, Duckworth is the subject of three complaints, which as of the date of this article show as pending, according to his Brokercheck report.
In March 2020, a customer filed a dispute requesting $150,000 in alleged damages on the allegations that customer’s 2015 investment in GPB Holdings was unsuitable.
This complaint was followed by another customer dispute fined in June 2020, alleging unsuitability of investment strategy and requesting unspecified compensatory damages. This customer reportedly invested in real estate security and direct investments type of investment product.
The most recent customer dispute involving Lee A. Duckworth was filed in early July 2020. The customer alleges that three alternative investments were not suitable. The statement of claim filed with FINRA reportedly seeks unspecified damages with the combined total investment amounting to $100,000.
All three customer disputes allege that Duckworth was employed with Triad Advisors when the alleged activities occurred.
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Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
Securities Lawyer Investigating Potential Options on Behalf of Lee Duckworth Customers
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or broker misconduct and is currently investigating conduct related to Lee Duckworth‘s customer dispute on the allegations of unsuitable investment recommendation into the GPB Capital Holdings.
The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of conducts related to Lee Duckworth‘s customer disputes on the allegations of unsuitable investment recommendation may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
