Great Point Capital LLC: Review of Regulatory Actions, Broker Misconduct and Complaints
The White Law Group reviews regulatory issues involving Great Point Capital LLC, a FINRA-registered broker-dealer headquartered in Chicago, Illinois. If you have suffered investment losses while working with the firm or one of its registered representatives, we may be able to help you with recovery options.
What is Great Point Capital LLC?
Great Point Capital LLC (CRD #114203) is a broker-dealer registered with the Financial Industry Regulatory Authority (FINRA) since 2001. The firm is based in Chicago, Illinois, and offers trading, investment banking, and wealth management services. Great Point also operates an affiliated registered investment advisor, Great Point Advisors, LLC.
The firm is reportedly known for its work with alternative investments, including private placements, which are often marketed to accredited investors seeking diversification or higher yields.
Regulatory Sanctions & Enforcement Actions
Great Point Capital has faced serious regulatory scrutiny in recent years. According to records:
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SEC Action (2024)
In September 2024, the Securities and Exchange Commission (SEC) announced a settlement with Great Point Capital, LLC for widespread recordkeeping violations involving off-channel communications. The SEC alleged that employees used unapproved messaging platforms such as personal email and text messages to conduct firm business — and that these communications were not properly maintained as required under federal securities laws.
As part of the settlement, Great Point Capital agreed to:
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Pay a $2 million civil penalty, Retain an independent compliance consultant, Cease and desist from future violations.
This enforcement action was part of a broader SEC sweep involving dozens of broker-dealers and investment advisers for similar violations.
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- FINRA Action – OATS Violations – $150,000 Fine (2019)
In a related action, the firm was fined $150,000 for Order Audit Trail System (OATS) reporting violations and systemic failures in supervision. - Chief Compliance Officer Barred by FINRA (2015)
The firm’s CCO at the time was barred from acting in a supervisory capacity after FINRA found that he failed to implement adequate compliance systems.
Risks of Private Placement Investments
Great Point Capital and its brokers reportedly market a number of private placement investments, including Regulation D offerings. While these investments can be suitable for certain investors, they are often high-risk, illiquid, and complex, making them inappropriate for many retail investors.
Key risks include:
- Lack of Liquidity – Many private placements have no secondary market, meaning investors may be unable to sell their shares for years—if ever.
- High Commissions – These products often carry large upfront fees, sometimes 10% or more, incentivizing brokers to sell regardless of investor suitability.
- Limited Transparency – Private placements are not subject to the same disclosure requirements as publicly traded securities.
- Default Risk – These investments may fail entirely, especially if they involve startups, real estate ventures, or companies with poor financials.
Brokerage firms have a duty to perform due diligence on all investment products they recommend, including private placements. If a broker fails to properly vet an offering or recommends it to an unsuitable investor, the firm may be liable.
Broker Misconduct & Complaints
Several brokers affiliated with Great Point Capital have faced customer complaints related to alternative investments including the following:
- Scott Kemps (CRD#: 1849069)
Based in Illinois and Florida, Kemps has reportedly been involved in multiple customer disputes, including pending complaints involving GPB Capital Holdings, a now-defunct alternative investment sponsor accused of a massive fraud scheme. - Rene Javier Castro (CRD#: 2559410)
Castro has reportedly been the subject of several complaints related to the recommendation of GWG L Bonds, an illiquid investment product that defaulted in 2022. Some of these cases have reportedly settled for tens of thousands of dollars.
If you worked with either of these representatives or others at Great Point Capital and are concerned about your investments, you may be entitled to recovery.
FINRA Arbitration vs. Class Action – What’s the Difference?
Investors who lose money due to broker misconduct or unsuitable investment recommendations often have the right to pursue claims through FINRA arbitration. This is the dispute resolution process required by most brokerage firms in client agreements.
FINRA Arbitration:
- Typically faster and less expensive than traditional litigation.
- Decided by a panel of neutral arbitrators.
- Allows recovery of market losses, interest, legal fees, and more.
Class Action Lawsuits:
- May apply when a large group of investors suffers the same type of harm.
- Often take years to resolve.
- Recoveries may be smaller due to distribution across a large class.
In most cases involving unsuitable private placements or broker misconduct, individual FINRA arbitration claims offer the best path to recovery.
Great Point Capital Recovery Options – Free Case Review
If you believe you were misled by a broker at Great Point Capital LLC or were sold unsuitable alternative investments such as GPB Capital or GWG L Bonds, you may have a valid claim. Brokerage firms can be held responsible for:
- Unsuitable investment recommendations
- Misrepresentation or omission of risks
- Lack of due diligence on private placements
- Breach of fiduciary duty
- Failure to supervise their brokers
The White Law Group has recovered millions of dollars for investors through FINRA arbitration.
Contact Us
If you suffered losses investing with Great Point Capital LLC, contact The White Law Group at 888-637-5510 for a free consultation. We represent investors nationwide in securities arbitration claims.
Visit www.whitesecuritieslaw.com to learn more.
Frequently Asked Questions (FAQs)
What types of investments does Great Point Capital sell?
The firm offers a range of investments, including alternative products such as private placements, Reg D offerings, and illiquid securities that may not be suitable for all investors.
Can I recover my losses from a private placement investment?
Yes. If you were misled or sold an unsuitable investment by a broker at Great Point Capital, you may be able to recover damages through FINRA arbitration.
