Financial Advisor Kevin Canterbury (Coastal Equities, Inc.) Customer Complaints

Kevin Canterbury is a Financial Advisor at Coastal Equities, Inc. in Scottsdale, Arizona, who operates his own independent advisory firm, Redstone Capital.  Kevin Canterbury entered the securities industry in 2005 and previously worked at Northwestern Mutual Investment Services and Mutual Securities.   

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in October 2018, a customer filed a complaint against Kevin Canterbury, alleging that the “Financial Adviser made unsuitable recommendations of alternative investments purchased in 2013 and 2018.” 

For a copy of Kevin Canterbury’s CRD, click https://brokercheck.finra.org/individual/summary/4939385#disclosuresSection.

In addition, the Wolper Law Firm, P.A. has been retained by a client of Kevin Canterbury and Coastal Equities, who was sold shares of three funds issued by GPB Capital Holdings.  As previously reported by the Wolper Law Firm, P.A., GPB Capital Holdings is a New York based alternative asset management firm with approximately $1.5 billion in investor capital, invested through a variety of different private placements, including the following:

-GPB Automotive Portfolio, LP
-GPB Cold Storage, LP
-GPB Eurobond Finance PLC
-GPB Holdings II, LP
-GPB Holdings, III, LP
-GPB Holdings Qualified, LP
-GPB Holdings, LP
-GPB NYC Development
-GPB Scientific, LLC
-GPB Waste Management, LP formerly: GPB Waste Management Fund, LP.

It appears that investors may lose a significant amount of money after GPB Capital Holdings failed to file required SEC reports in April 2018.  Securities regulators have since launched investigations into GPB Capital Holdings and brokerage firms’ sales of GPB’s private placements.  It was recently disclosed that the FBI has commenced an investigation into GPB, which remains pending. 

GPB Capital Holdings LLC started in 2013, buying auto dealerships. It reportedly has raised money from approximately 4,000 investors. The GPB Automotive Portfolio reportedly raised $622 million, with a minimum investment of $100,000, and GPB Holdings II reportedly raised approximately $650 million.

It is believed that brokerage firms Royal Alliance Associates, Inc., Sagepoint Financial, Inc., FSC Securities Corp., Woodbury Financial Services, Inc., Newbridge Securities, Ladenburg Thalmann, and Hightower Securities also sold GPB Capital Holdings Funds.

The brokerage firms and brokers working at those firms were incentivized to sell the GPB funds by commissions rates of nearly 8%. GPB is said to have paid more than $100 million in commissions to brokers and brokerage firms that sold the risky GPB private placements.

According to public reports, trouble for GPB started in 2017 when it sued a former business partner who allegedly reneged on a sale of multiple car dealerships. Among other claims, GPB Capital Holdings sought the return of $42 million it had paid to the former business partner.

Then, in April 2018, GPB Capital Holdings, failed to provide the SEC with required financial reports and a few months later announced that no new investor capital would be accepted. According to public reports, the firm is “straightening out” the accounting for two of its larger funds – GPB Holdings II and GPB Automotive Portfolio.

Shortly after GPB’s announcement, Massachusetts securities regulators announced an investigation into 63 broker-dealers who allegedly sold GPB private placements. GPB’s auditor also recently resigned, citing perceived risks, and securities regulators Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) also have launched independent investigations into GPB Capital Holdings and those broker-dealers that sold GPB Funds.

There is also litigation pending between GPB and its former business partner, Patrick Dibre.  In the litigation, Patrick Dibre has alleged that GPB Capital Holdings is nothing more than a “very compliucated and manipulative ponzi scheme.”  

The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities.  Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters.  We can be reached at 800.931.8452 or by email at mwolper@wolperlawfirm.com.

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]