FINRA Censures and Fines IBN Financial Services for Unsuitable GPB Funds Sales
According to The Financial Industry Regulatory Authority (FINRA) on April 14, the regulator has censured and fined IBN Financial Services $45,000 and ordered the firm to pay partial restitution of $32,385, plus interest.
Between June 8, 2018, and June 29, 2018, IBN allegedly failed to tell eight investors in two offerings related to GPB Capital Holdings, LLC that the issuer failed to timely make required filings with the Securities and Exchange Commission, including filing audited financial statements, according to a Letter of Acceptance Waiver and Consent.
According to FINRA, on April 27, 2018, GPB Capital sent a letter to many broker-dealers that sold GPB Capital-related investments, including IBN, stating that GPB Capital was in the process of registering certain classes of securities issued by certain of limited partnerships, including GPB Automotive Portfolio, and GPB Holdings II, with the SEC. As part of that process, GPB Automotive Portfolio and GPB Holdings II were required to file audited financial statements. The letters further stated that the delivery of these audited financial statements would be delayed pending the completion of a forensic audit.
FINRA indicates that while IBN received the email from GPB Capital notifying it of the delays and GPB Capital’s stated intention to complete a forensic audit, IBN sold five limited partnership interests in Automotive Portfolio and three limited partnership interests in Holdings II after that announcement. The principal value of those eight sales, which occurred between June 8, 2018 and June 29, 2018, totaled $466,500. IBN received a total of $32,385 in commissions from the sales.
Potential Lawsuits to Recover Financial Losses
The White Law Group has received numerous calls from investors who suffered losses involving GPB Capital offerings to learn more about the firm’s investigation please see:
The foregoing information is all publicly available and provided by the White Law Group. If you are concerned about investments with IBN Financial Services Inc., the securities attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. For more information, please visit our website, www.whitesecuritieslaw.com.
Tags: GPB Automotive portfolio, GPB Capital, GPB Holdings II, IBN Financial Services Inc., IBN Financial Services Inc. failure to supervise, IBN Financial Services Inc. fined, IBN Financial Services Inc. FINRA, IBN Financial Services Inc. investigation, IBN Financial Services Inc. sanctioned, IBN GPB automotive Last modified: December 9, 2022