Concorde Investment Services, based in Ann Arbor, Michigan, has been sanctioned by Financial Industry Regulatory Authority (FINRA) for failing to adequately supervise unsuitable recommendations of alternative investments made to six customers. The investigation focused on the securities broker dealer’s supervision of GPB Capital Holdings LLC (GPB Capital) limited partnership interests from November 2015 to April 2018. The case was resolved on November 4, 2024. Letter of Acceptance, Waiver, and Consent (AWC) No. 2018060897201.
According to the findings, Concorde representatives recommended GPB Capital investments to customers with conservative and moderate risk tolerances. These products were characterized as speculative, high risk, and illiquid, making them inappropriate for the customers’ investment profiles. Five of the six customers, all seniors, held alternative investments exceeding 30% of their net worth, a clear violation of Concorde’s suitability guidelines. Despite visible red flags on suitability documentation, Concorde failed to investigate the recommendations further.
As a result, FINRA issued a censure, a $110,000 fine, and ordered partial restitution of $20,382.39 plus interest to three affected customers. Concorde stopped recommending GPB Capital limited partnership interests in April 2018.
Concorde Investment Services is a registered brokerage firm headquartered in Michigan, providing investment services to customers across the United States.