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GPB Capital Holdings Losses with Former Madison Avenue Securities, LLC Broker Robert Luley Jr.

Posted on Tuesday, October 27th, 2020 at 8:32 pm    

Madison Avenue Securities, LLC

Erez Law is currently investigating former Madison Avenue Securities, LLC broker Robert Luley Jr. (CRD# 4176139), who is alleged to recommend unsuitable GPB Capital Holdings investments. Luley has been registered with Pruco Securities, LLC in Charlotte, North Carolina since May 2020 and with Prudential Financial Planning Services in Charlotte, North Carolina since June 2020. Previously, Luley was registered with Madison Avenue Securities, LLC in Clover, South Carolina from 2014 to 2018. 

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.

Luley has been the subject of four customer complaints in 2020, according to his CRD report:

August 2020. “Unsuitable recommendation re: GPB Automotive.” The customer is seeking $75,000 in damages and the case is currently pending. The complaint is regarding direct investments and took place while Luley was registered with Madison Avenue Securities, LLC.

July 2020. “Claimants allege unsuitable recommendation of GPB in Jan 2018.” The customer is seeking $70,000 in damages and the case is currently pending. The complaint is regarding direct investments and took place while Luley was registered with Madison Avenue Securities, LLC.

June 2020. “Claimants allege failure to conduct Due Diligence on several points, unsuitable recommendation, over concentration, misrepresentations and omissions in violation of FINRA and SC regulations in the sale of alternative investments starting in 2014.” The customer is seeking $250,000 in damages and the case is currently pending. The complaint is regarding direct investments and took place while Luley was registered with Madison Avenue Securities, LLC.

April 2020. “Claimants allege failure to conduct Due Diligence on several points, unsuitable recommendation, over concentration, misrepresentations and omissions in violation of FINRA regulations in the sale of alternative investments. The client opened their accounts in 2014.” The case is currently pending. The complaint is regarding direct investments and took place while Luley was registered with Madison Avenue Securities, LLC.

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, Madison Avenue Securities, LLC may be liable for investment or other losses suffered by Luley’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.