investor protection

SEC Awards $22 Million to Two Whistleblowers Whose Information Resulted in Successful SEC Enforcement Actions Against A Financial Services Firm

Published on: May 10, 2021 | by Iorio Altamirano

On May 10, 2021, the Securities and Exchange Commission (“SEC”) announced an award of approximately $22 million to two whistleblowers whose information and assistance aided the SEC that resulted in successful SEC enforcement actions brought against a financial services firm.

The first whistleblower, who was the initial source of the investigation, received an award of $18 million. The second whistleblower, who submitted information much later after the investigation was already underway, received an award of $4 million. Both whistleblowers assisted the SEC’s staff to better understand complex transactions related to the matters under investigation.

“This case demonstrates once again the value of the whistleblower program in helping to protect investors, and the Commission’s continued commitment to rewarding individuals who provide high-quality tips,” said Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower.

Retail Investors Fight Back Against Robinhood for Its January 28, 2021, Trading Restrictions on “Meme Stocks,” Such as GameStop, AMC, Koss Corporation, and Express, Inc.

Published on: May 10, 2021 | by Iorio Altamirano

On Thursday, January 28, 2021, Robinhood designated specific stocks “position closing only,” meaning that customers could not purchase additional shares in those stocks. The targeted stocks included GameStop (NYSE: GME), AMC (NYSE: AMC), Blackberry (NYSE: BB), Nokia (NYSE: NOK), Koss Corporation (NYSE: KOSS), and Express, Inc. (NYSE: EXPR).

Robinhood was joined by other online brokers, including TD Ameritrade, Charles Schwab & Co, Inc, Interactive Brokers, LLC, Webull Financial, LLC, E*Trade Securities LLC, who all implemented trading restrictions on targeted securities. These online brokerage firms, including Robinhood, intentionally deprived their customers, without notice, of the ability to use their service in order to slow the growth of the targeted “meme stock” securities.

As the trading restrictions were put into place by the online brokerage firms, including Robinhood, retail investors watched helplessly as the value of their positions plummeted with no potential to remediate the positions given the wrongful sale pressure initiated by Robinhood and others.

Iorio Altamirano LLP Investigates HighTower Securities, LLC Over GPB Funds

Published on: April 20, 2021 | by Iorio Altamirano

HighTower Securities, LLC was formed in June 2001 and is headquartered in Illinois, Chicago. The firm is under common control with HighTower Advisors, LLC, a registered investment advisor (RIA). According to legal filings, HighTower Advisors, LLC facilitated the sale of some of the partnership interests of the GPB funds.

Iorio Altamirano LLP is investigating claims on behalf of defrauded investors who were victims in the GPB funds scheme. The GPB funds were marketed to independent broker-dealers and investment advisers who would, in turn, sell the GPB funds to their retail investors. According to publicly available records filed with the SEC, broker-dealer HighTower Securities, LLC likely received sales compensation for selling the GPB funds to retail investors.

If you lost money in GPB funds with HighTower Securities, LLC, you may have a claim.

Iorio Altamirano LLP Investigates Private Client Services, LLC Over GPB Funds

Published on: April 20, 2021 | by Iorio Altamirano

Private Client Services, LLC is an independently owned, full-service broker-dealer. The firm was formed in February 2001 and is headquartered in Louisville, Kentucky.

Iorio Altamirano LLP is investigating claims on behalf of defrauded investors who were victims in the GPB funds scheme. The GPB funds were marketed to independent broker-dealers and investment advisers who would, in turn, sell the GPB funds to their retail investors. According to publicly available records filed with the SEC, broker-dealer Private Client Services, LLC likely received sales compensation for selling the GPB funds to retail investors.

If you lost money in GPB funds with Private Client Services, LLC, you may have a claim.

Iorio Altamirano LLP Investigates Innovation Partners, LLC Over GPB Funds

Published on: April 20, 2021 | by Iorio Altamirano

Innovation Partners, LLC is a financial services and consulting firm headquartered in Charlotte, North Carolina. The firm was formed in November 2007.

Iorio Altamirano LLP is investigating claims on behalf of defrauded investors who were victims in the GPB funds scheme. The GPB funds were marketed to independent broker-dealers and investment advisers who would, in turn, sell the GPB funds to their retail investors. According to publicly available records filed with the SEC, broker-dealer Innovation Partners, LLC likely received sales compensation for selling the GPB funds to retail investors.

If you lost money in GPB funds with Innovation Partners, LLC, you may have a claim.

Iorio Altamirano LLP Investigates Kingsbury Capital, Inc. Over GPB Funds

Published on: April 20, 2021 | by Iorio Altamirano

Kingsbury Capital, Inc. was formed in December 2000 and was headquartered in Evanston, Illinois. The firm terminated or withdrew its registration with FINRA in December 2019.

Iorio Altamirano LLP is investigating claims on behalf of defrauded investors who were victims in the GPB funds scheme. The GPB funds were marketed to independent broker-dealers and investment advisers who would, in turn, sell the GPB funds to their retail investors. According to publicly available records filed with the SEC, broker-dealer Kingsbury Capital, Inc. likely received sales compensation for selling the GPB funds to retail investors.

If you lost money in GPB funds with Kingsbury Capital, Inc., you may have a claim.

Iorio Altamirano LLP Investigates Detalus Securities, LLC Over GPB Funds

Published on: April 20, 2021 | by Iorio Altamirano

Detalus Securities, LLC was formed in November 1999 and was headquartered in St. Louis, Missouri. The firm terminated or withdrew its registration with FINRA in October 2020.

Iorio Altamirano LLP is investigating claims on behalf of defrauded investors who were victims in the GPB funds scheme. The GPB funds were marketed to independent broker-dealers and investment advisers who would, in turn, sell the GPB funds to their retail investors. According to publicly available records filed with the SEC, broker-dealer Detalus Securities, LLC likely received sales compensation for selling the GPB funds to retail investors.

If you lost money in GPB funds with Detalus Securities, LLC, you may have a claim.

Iorio Altamirano LLP Investigates Cascade Financial Management, Inc. Over GPB Funds

Published on: April 20, 2021 | by Iorio Altamirano

Cascade Financial Management, Inc. was formed in May 2001 and was headquartered in Denver, Colorado. The firm terminated or withdrew its registration with FINRA in December 2020.

Former Cascade Financial Management, Inc. broker Daniel Alex Cantarovici was the subject of one regulatory disclosure involving GPB Capital funds. He was registered with the firm between April 2002 and October 2017.

Iorio Altamirano LLP is investigating claims on behalf of defrauded investors who were victims in the GPB funds scheme. The GPB funds were marketed to independent broker-dealers and investment advisers who would, in turn, sell the GPB funds to their retail investors. According to publicly available records filed with the SEC, broker-dealer Cascade Financial Management, Inc. likely received sales compensation for selling the GPB funds to retail investors.

Iorio Altamirano LLP Investigates Capital Financial Services, Inc. Over GPB Funds

Published on: April 20, 2021 | by Iorio Altamirano

Capital Financial Services, Inc. was formed in August 1980 and was headquartered in Minot, North Dakota. FINRA canceled the firm’s license in October 2020 for failure to pay outstanding fees.

Iorio Altamirano LLP is investigating claims on behalf of defrauded investors who were victims in the GPB funds scheme. The GPB funds were marketed to independent broker-dealers and investment advisers who would, in turn, sell the GPB funds to their retail investors. According to publicly available records filed with the SEC, broker-dealer Capital Financial Services, Inc. likely received sales compensation for selling the GPB funds to retail investors.

If you lost money in GPB funds with Capital Financial Services, Inc., you may have a claim.

Iorio Altamirano LLP Investigates DH Hill Securities, LLLP Over GPB Funds

Published on: April 20, 2021 | by Iorio Altamirano

DH Hill Securities, LLLP is a broker-dealer headquartered in Kingwood, Texas. The firm was formed in June 1996.

Iorio Altamirano LLP is investigating claims on behalf of defrauded investors who were victims in the GPB funds scheme. The GPB funds were marketed to independent broker-dealers and investment advisers who would, in turn, sell the GPB funds to their retail investors. According to publicly available records filed with the SEC, DH Hill Securities, LLLP likely received sales compensation for selling the GPB funds to retail investors.

If you lost money in GPB funds with DH Hill Securities, LLLP, you may have a claim.