Coastal Equities, Inc. broker Kevin Canterbury (CRD# 4939385) is alleged to recommend unsuitable GPB Capital Holdings investments. Canterbury has been registered with Coastal Equities, Inc. in Scottsdale, Arizona since 2012.
GPB Capital Holdings is a New York-based investment firm that offers exempt, private-placement securities. These investments inherently have a high degree of risk due to their nature as unregistered securities offerings (and without regulatory oversight). It is alleged that brokerage firms that sold GPB Capital Holdings and their brokers who recommended GPB Capital Holdings to their clients may not have conducted appropriate due diligence on the funds.
Canterbury has been the subject of two customer complaints between 2019 and 2020, according to his CRD report:
- June 2020. “Claimants allege that Mr. Canterbury made unsuitable recommendations of alternative investments purchased from 2014-2016.” The customer is seeking $300,000 in damages in this pending complaint.
- July 2019. “Claimant alleges that Mr. Canterbury made unsuitable recommendations in securities, notwithstanding the client’s signature on each disclosure document attesting that, among other things, she was an accredited investor, understood the risks of the investments, understood the products may have no liquidity, and that she received, read, and understood the prospectus or PPM for each investment at issue.” The customer is seeking $300,000 in damages in this pending complaint.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Coastal Equities, Inc. may be liable for investment or other losses suffered by Canterbury’s customers.
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