Securities Arbitration Lawyer Blog
Iorio Altamirano LLP is currently investigating MSC – BD, LLC, and veteran stockbroker Robert Fehrman for recommending that clients invest in private placement securities issued by GPB Capital. Mr. Fehrman and MSC – BD, LLC are currently the subject of a customer dispute related to his recommendation of GPB Automotive Portfolio, LP, one of the private placement funds issued by GPB Capital.
The GPB funds, which are private securities offerings exempt from registration with the Securities and Exchange Commission (SEC), are inherently risky investments. These investments are suitable only for highly sophisticated investors who understand the risks and can afford a significant monetary loss. Unfortunately, many brokerage firms and brokers sold the GPB Capital securities to retirees and unsophisticated investors because they paid a high up-front commission.
Bob Fehrman has been registered as a financial consultant with MSC – BD, LLC in Cumming, Georgia, since June 2013. According to his LinkedIn profile, Mr. Fehrman is located in Florissant, Missouri.
Iorio Altamirano LLP is also investigating the sales practices and due diligence of MSC – BD, LLC related to its sale of GPB Capital funds.
Iorio Altamirano LLP is a securities arbitration law firm located in the heart of New York City. Iorio Altamirano LLP represents investors nationwide who have suffered investment losses due to securities fraud.
If you have suffered financial losses as a result of any of the following GPB private placement offerings, contact Iorio Altamirano LLP for a free and confidential review of your legal rights:
- GPB Automotive Portfolio, LP
- GPB Cold Storage LP
- GPB Holdings, LP
- GPB Holdings II, LP
- GPB Holdings III, LP
- GPB Holdings Qualified, LP
- GPB NYC Development, LP
- GPB Waste Management Fund, LP
Financial Advisor Robert Malone Fehrman (CRD No. 205552)
Bob Fehrman has 46 years of experience in the securities industry and has been associated with 13 different brokerage firms, including one firm that has been expelled from the industry by FINRA. Since 2005, Mr. Fehrman has been associated with the following firms:
- MSC – BD, LLC (June 2013 to the present).
- Richfield Orion International, Inc. (May 2012 to May 2013).
- WFG Investments, Inc. (January 2005 to April 2012).
Mr. Fehrman’s public disclosure report with FINRA discloses a long history of customer disputes, run-in with regulators, and one contentious employment termination.
In 1994, Mr. Fehrman was “permitted to resign” after a customer allegation, which Mr. Fehrman denies.
Throughout his career, Mr. Fehrman has been the subject of five regulatory actions:
- Ohio Division of Securities (1999): The Ohio Division of Securities denied Mr. Fehrman’s application, alleging that he was not of good business repute.
- Missouri Secretary of State / Securities Division (1995): The State of Missouri’s securities regulator fined Mr. Fehrman $10,000 after alleging that he sold securities from Missouri when he was not registered with the State.
- National Association of Securities Dealers, Inc. (1992): Fehrman was censured, fined ($5,000), and suspended after the National Association of Securities Dealers, Inc. (“NASD”) alleged that Mr. Fehrman violated Article III, Sections 1 and 27 of NASD’s Rules of Fair Practice. Mr. Fehrman accepted a settlement that suspended him for two years from ownership of a controlling interest in any brokerage firm or acting in any principal capacity.
- National Association of Securities Dealers, Inc. (1985): Fehrman was censured and fined $1,000 after the NASD alleged that Westport Financial Group, Inc., a brokerage firm owned by Mr. Fehrman, failed to meet net capital requirements.
- National Association of Securities Dealers, Inc. (1984): Fehrman was censured and fined $500 after the NASD alleged that false and misleading information was provided to investors in the form of Limited Partnership circulars.
Mr. Fehrman has also been the subject of at least three customer disputes:
- Customer Dispute (September 2020): In September 2020, a customer filed a securities arbitration complaint against MSC-BD, LLC, and Mr. Fehrman, alleging $200,000 in damages in connection with Mr. Fehrman’s recommendation of GPB Automotive Portfolio, LP. The dispute is still pending.
- Customer Dispute (November 2010): In September 2010, a customer filed a securities arbitration complaint alleging $60,000 in damages. The allegations related to the sale of an oil and gas partnership recommended by Mr. Fehrman. WFT Investments, Inc., which employed Mr. Fehrman at the time of the alleged conduct, settled the dispute for $30,000.
- Customer Dispute (December 1989): In December 1989, a customer filed a securities arbitration complaint alleging $211,914 in damages. The customer alleged that Mr. Fehrman was liable as the controlling person for Westport Financial Group’s actions, a brokerage firm that owned and supervised. The customer also alleged that Mr. Fehrman conspired to violate RICO and failed to supervise a branch manager and broker. An arbitration panel awarded the customer $256,095.79 in compensatory damages and $81,605.75 in attorneys’ fees.
How to Recover Losses or Obtain a Free Consultation
If you have suffered financial losses investing with Mr. Fehrman or MSC-BD, LLC, or suspect that Mr. Fehrman did not have your best interest in mind when recommending an investment, such as one of the GPB Capital funds, contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.