The Arizona Securities Division last month moved to take the securities license from a financial advisor, Michael V. Bradley and his eponymous registered investment advisor, alleging “improper recommendation to clients” who bought high-risk, private placement securities issued from 2015 to 2018 issued and managed by GPB Capital Holdings.
The Securities Division’s filing also “concerns Bradley and [Bradley Wealth Management’s] false statements and misleading omissions about the GPB Capital securities, and Bradley and [the firm’s] disciplinary history,” according to the May 22 notice for a hearing on the matter.
GPB Capital, which sold $1.8 billion in private placements from 2013 to 2018 before its collapse, is not a party in the matter, according to the Arizona Securities Division. GPB is currently in receivership and its two senior executives, founder David Gentile and broker-dealer chief Jeff Schneider, last month were sentenced to seven and six years, respectively, in prison after being convicted last summer in federal court in Brooklyn for fraud.
Bradley did not return a call Tuesday morning to comment on the Arizona Securities Division’s action. According to its most recent Form ADV, his firm manages $282 million in client assets.
The Arizona action seeks to revoke or suspend the firm's and Bradley's licenses.
According to his profile with the Securities and Exchange Commission (SEC), Bradley in 2008 was “discharged” or fired from a broker-dealer for selling a hedge fund that was not approved by the firm.
“In oral communications with clients, Bradley had only positive things to say about his background,” according to the Arizona filing.
In March 2018, a former GPB business partner in a lawsuit alleged that GPB was a Ponzi scheme. According to the Arizona filing, Bradley allegedly disregarded that red flag.
“Even after learning about [the business partner’s] Ponzi scheme allegations, Bradley and [the firm] continued to solicit new GPB Capital interests to at least four investors,” according to the filing. The principal value of these GPB Capital interests sold shortly after these allegations totaled at least $250,000.
“However, before selling interests in GPB Capital, Bradley and BWM did not disclose to at least four clients the Ponzi scheme allegation,” according to the filing. “This material information should have been disclosed to [Bradley’s] clients.”
Bradley and his firm also falsified documents regarding some clients’ net worth; private placements like GPB are to be sold only to wealthy or accredited investors with a net worth of more than $1 million.
Nine-month electronic trading freeze and share lending program at the center of dismissed claim.
Meanwhile, Rossby Financial's leadership buildout rolls on with a new COO appointment as Balefire Wealth welcomes a distinguished retirement specialist to its national network.
With a smaller group of companies driving stock market performance, advisors must work more intentionally to manage concentration risks within client portfolios.
Professional athletes are often targets of scam artists and are particularly vulnerable to fraud.
The brokerage giant tells Wall Street it will use artificial intelligence to reach clients it has never been able to serve — and turn the technology's perceived threat into a competitive edge.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline
