The White Law Group is investigating potential securities claims involving Triad Advisors, LLC.
Triad Advisors LLC, (CRD# 25803, Atlanta, GA) a national financial advisory firm headquartered in Atlanta, GA, reportedly has 13 disclosure events on its broker record including 8 regulatory events, and 5 arbitrations, according to FINRA, the self-regulator who oversees brokers and brokerage firms.
FINRA and the Securities and Exchange Commission may impose regulatory actions against a broker-dealer such as censures, fines, suspensions and restitution, among others. Regulatory actions can have serious consequences for a broker-dealer’s profile and reputation.
Triad Advisors Sanctioned for Supervisory Failures
January 2022 – FINRA censured and fined Triad Advisors $195,000 after the firm allegedly failed to supervise recommendations of the high-risk LJM Preservation and Growth Fund (LJM). Triad representatives allegedly sold $2,267,000 in LJM to fifty-eight customers, according to FINRA’s findings. LJM’s value dropped 80% during an extreme volatility event in February 2018. Consequently, the fund ultimately liquidated and closed, resulting in hundreds of thousands in losses for Triad’s customers.
Triad Advisors also agreed to pay restitution of $510,256.57 and has “established and implemented policies, procedures, and internal controls” designed to address the issues.
February 2021 – According to FINRA, the regulator has censured and fined Triad Advisors $150,000. FINRA ordered the firm to pay restitution to investors for supervisory failures related to switching and short-term trading of class A share mutual funds. Triand Advisor allegedly failed to establish and maintain a reasonable supervisory system to achieve compliance with suitability requirements.
According to FINRA, from June 3, 2015, through July 31, 2017, a registered representative associated with Triad engaged in short-term, unsuitable purchases and sales and switching of A share mutual funds in 10 customer accounts, resulting in customer losses in nine of the accounts of $43,998.48.
In addition to the censure and fine, the firm was required to pay restitution of $43,998.48 plus interest.
Triad Advisors Lawsuits
October 2022 – The White Law Group filed a FINRA arbitration claim against Lion Street Financial and Triad Advisors for investment losses involving high risk alternative investments.
The firm filed the FINRA suit on behalf of a Colorado family, alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision for damages of $100,000.01 to $500,000.00.
December 2020 – The White Law Group filed a FINRA Lawsuit against Triad Advisors Inc. for alleged violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision. The suit alleges that Triad Advisors Inc. unsuitably invested its client in numerous high risk illiquid investments.
Triad Advisors allegedly failed to perform the necessary due diligence on these investments prior to recommending them to this particular investor. The claim was seeking damages in an amount between $1,000,000.01 and $5,000,000.
Triad Advisors & GPB Capital Holdings
July 2019 – Triad Advisors was reportedly named in six customer arbitration complaints seeking $1.65 million in damages in connection with GPB private placement offerings.
There have been numerous lawsuits filed against GPB Capital since then, alleging serious financial misconduct and accusations of an alleged Ponzi scheme.
In August 2021, the CEO of a GPB Capital Holdings, a New York-based registered investment adviser, and two others were arrested in connection with a massive “Ponzi-like scheme” that allegedly defrauded 17,000 investors across the U.S. out of more than $1.7 billion, according to the U.S. Attorney’s Office for the Eastern District of New York.
The SEC alleges that the “Ponzi-like scheme” continued for more than four years because GPB was able to hide the funds’ financial condition from investors, neglecting to deliver audited financial information.
Investigating Potential Claims
The White Law Group continues to investigate potential securities claims involving Triad Advisors.
All broker-dealers have a responsibility to adequately supervise its employees. They must ensure the necessary procedures and systems to detect misconduct. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.
FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional. It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing such claims in court.
National Securities Attorneys
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.
Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.
With over 30 years of securities law experience, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions attempt to recover their investment losses. For more information, please visit our website, www.whitesecuritieslaw.com.
If you have suffered losses investing with Triad Advisors and would like to speak with a securities attorney, please call The White Law Group at 888-637-5510.
Tags: FINRA lawsuits, finra sanctions, GPB Capital, LJM, LJM Partners, Triad Advisors LLC Last modified: May 16, 2023