Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Shepherd, Smith, Edwards & Kantas Files Lawsuit Against Kalos Capital and its Registered Representative, Kristian Finfrock, for Wrongful Sale of Alternative Investments, Including GPB Capital

January 7, 2020 GMT

EVANSVILLE, Wis., Jan. 07, 2020 (GLOBE NEWSWIRE) -- The law firm of Shepherd, Smith, Edwards & Kantas (“SSEK”) has filed another case against Kalos Capital for one of their registered representatives pushing clients into so-called “alternative investments,” most notably, GPB Capital. According to the complaint filed with FINRA, Kristian Finfrock, who has been a broker with Kalos since 2012, placed more than $750,000 of a retired and ill client’s life savings into illiquid alternative investments, including $185,000 into GPB Capital. Other than GPB, most of the alternative investments were non-traded REITs, including HPI Real Estate Opportunities Fund, Shopoff Land Fund, Cottonwood Residential, AEI Capital Corporation and ARC Trust.

Mr. Finfrock, although a registered representative of Kalos, works under the company name “Retirement Income Strategies.” However, it is typically unsuitable and inappropriate for retired investors to place any significant savings into illiquid, opaque and very risky alternative investments, such as those Finfrock and Kalos allegedly sold to this client. In addition to Evansville, Finfrock and Retirement Income Strategies purport to have offices in Madison, Middleton and Brookfield.

It appears from SSEK’s investigation that Kalos was encouraging its representatives from all over the country to sell expensive and illiquid alternative investments to customers where such investments were clearly unsuitable and often misrepresented.

GPB Capital Holdings

GPB Capital Holdings is a New York based alternative asset manager that purportedly invests in waste management and car dealerships. GPB is under investigation by FINRA, the SEC, the FBI and several state regulators. According to GPB, it raised $1.8 billion from investors and reportedly paid out more than $165 million in commissions to brokers, such as Kalos. Unfortunately, the value of GPB’s Funds have dropped dramatically in recent months as the company continues to miss filing deadlines and is accused of being a Ponzi scheme.

Investment Loss Lawyers

Please contact the lawyers at SSEK if you suffered losses from investing in a GPB fund, or any other alternative investment, that was recommended to you through Kalos Capital, Kristian Finfrock, or any other brokerage firm and/or financial adviser. Our lawyers represent investors whose brokers and firms inappropriately recommended investments to them, such as GPB Capital. Contact SSEK to request your free, no obligation case consultation.

ContactSam Edwards800-259-9010 sedwards@sseklaw.com