The firm’s client, a registered representative of a national broker-dealer, received a customer complaint relating to the customer’s investments in two limited partnerships offered by GPB Capital Holdings, Inc. (“GPB”). The customer complaint alleged that the registered representative: (1) did not discuss the commissions he received from selling the GPB investments; (2) did not warn the investor that GPB could suspend distributions; (3) did not warn the customer that the GPB investments were high risk; and (4) had no reason to recommend the GPB investments to the customer because the customer was purportedly not seeking to generate large returns.
This complaint was confidentially settled in advance of an arbitration hearing and our client requested to have reference to it expunged from his FINRA BrokerCheck report. After conducting an expungement hearing via zoom, the Arbitrator determined in a detailed award that the investor’s claims against the registered representative were both false and clearly erroneous and recommended the expungement of the customer’s complaint from our client’s FINRA BrokerCheck report.
Jessica Levine, a partner in WSSLLP’s New York Office, handled the hearing.
A copy of the publicly available award is found here.