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Woodbury Financial Services, Inc. Broker Daryl Serizawa GPB Capital Holdings Losses Investigation

Posted on Tuesday, April 14th, 2020 at 2:55 pm    

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Did Woodbury Financial Services, Inc. broker Daryl Serizawa (CRD# 2293939) recommend you invest in GPB Capital Holdings’ private placements? Serizawa has been registered with Woodbury Financial Services, Inc. in Irvine, California since 2017. Previously, Serizawa was registered with Independent Financial Group, Llc in Irvine, California from 2012 to 2017.

GPB Capital Holdings is a New York-based investment firm that offers exempt, private-placement securities that inherently have a high degree of risk due to their nature as unregistered securities offerings (and without regulatory oversight). The investment firm raised $1.8 billion from investors through private placements that invested in automotive dealerships, the waste management industry, and middle-market lending. These investments were high risk and high commission (nearly 8%) private placements.

GPB Capital Holdings manages the following nine private placements:

  • GPB Automotive Portfolio, LP
  • GPB Cold Storage LP
  • GPB Holdings, LP
  • GPB Holdings II, LP
  • GPB Holdings III, LP
  • GPB Holdings Qualified, LP
  • GPB NYC Development, LP
  • GPB Waste Management Fund, LP

GPB Capital Holdings was launched in 2013 with a focus on buying auto dealerships. According to the SEC, GPB Automotive Portfolio raised $622.1 million from wealthy investors since 2013, and the minimum investment in GPB Automotive Portfolio was $100,000. GPB Holdings II raised $645.8 million since 2015. GPB Holdings II and GPB Automotive Portfolio together have paid brokers $100.1 million in commissions at a rate of 7.9%.

It is alleged that more than 60 independent broker-dealers have sold GPB Capital Holdings funds, including:

  • Royal Alliance Associates Inc.
  • Sagepoint Financial Inc.
  • FSC Securities Corp.
  • Woodbury Financial Services Inc.

Serizawa has been the subject of three customer complaints between 2004 and 2019, one of which was denied, according to his CRD report. The most recent complaint is regarding:

December 2019. “Customers allege inappropriate sale of private investment funds.” The customer is seeking $350,000 in damages and the case is currently pending.

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, Woodbury Financial Services, Inc. may be liable for investment or other losses suffered by Serizawa’s customers.

Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.