Currently financial advisor James Waters (Waters), currently employed by brokerage firm Lion Street Financial, LLC has been subject to at least one disclosable event. These events include one customer complaint. According to a BrokerCheck reports most of the recent customer complaints concern either corporate debt securities or alternative investments such as direct participation products (DPPs) like business development companies (BDCs), non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and private placements. The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high risk, low reward products.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $5,000.00 on November 09, 2022.
Client alleges Misrepresentations and Omissions, Breach of Fiduciary Duty, Unsuitable Investments, Breach of Securities Act of 1934, and Negligence. Client invested in the GPB Automotive portfolio in May of 2018 which was a private placement. Client was presented the portfolio because he qualified for the private placement due to his high net worth and the portfolio was consistent with his risk profile and long term investment objectives. It was ultimately discovered that certain individuals of GPB were committing fraud and in February 2021, The Securities and Exchange Commission (“SEC”) charged three individuals and their affiliated entities with running a Ponzi-like scheme that raised over $1.7 billion from securities issued by a New York-based asset management firm and registered investment adviser, GPB Capital. The SEC also charged GPB Capital with violating the whistleblower protection laws. In June of 2022 the SEC recommended GPB be placed in receivership to protect investor assets.
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