On December 29, 2022, the Financial Industry Regulatory Authority fined Nashville based, Center Street Securities, Inc., for improperly selling GPB Capital Holding private placements. According to FINRA, Center Street Securities failed to inform nearly 20 investors that GPB had failed to submit its required filings with the SEC.
According to the Letter of Acceptance, Waiver and Consent, filed by FINRA, Center Street “negligently failed” to tell 20 investors in two offerings related to GPB Capital Holdings LLC, that the issuer failed to make timely required filings with the Securities and Exchange Commission. Per FINRA, in connection with these 20 sales, Center Street representatives did not inform the customers that the partnerships in question, Automotive Portfolio and Holdings II had not timely filed their audited financial statements with the SEC or the reasons for the delay. The delay in filing audited financial statements and the reasons for it was material information that should have been disclosed. Between May 4, 2018, and June 29, 2018, Center Street sold limited partnership interests. The principal value of those 20 sales, totaled $1,206,000. These transactions generated $98,727.50 in commissions. By negligent omitting material facts, Center Street violated FINRA rules.
In settling this matter, Center Street Securities neither admitted nor denied the charges, but consented to the entry of FINRA’s findings. Center Street Securities, agreed to a public censure and to pay a $70,000 fine and partial restitution of $89,652.50.
If you have not hired an attorney and wish to discuss any securities related question, please contact David A. Weintraub, P.A., 7805 SW 6th Court, Plantation, FL 33324. By phone: 954.693.7577 or 800.718.1422.