Two investors allege they suffered investment losses due to Eric Weschke’s recommendations.
If you’ve lost money investing with Eric Weschke or Kalos Capital, you may have a claim. Contact Sonn Law today by filling out our form to submit a confidential message, or call us anytime at 866–827–3202 to schedule a free consultation.
Eric Peter Weschke (CRD#: 2486324) is a registered broker and investment advisor. Since 2011, Mr. Weschke has been employed at Kalos Capital in Setauket, New York. Previously, he has also been associated with Harrison Douglas, Alternative Wealth Strategies, and Equity Services.
Recent Investor Complaints: Eric Weschke of Kalos Capital
Weschke has been the subject of 14 customer complaints between 1998 and 2019, according to his CRD report.
September 2019. “In February 2019, client invested approximately $127,000 in GPB Capital Holdings related products. Claimalleges breach of fiduciary duty, breach of contract, etc. Does not specifically allege unsuitable transactions.” The customer is seeking $127,000 in damages and the case is currently pending.
February 2019. “Unsuitable investment recommendations, breach of fiduciary duty, failure to supervise during the time period October 2015–2017.” The case is currently pending.
February 2019. “Breach of fiduciary duty, unsuitable recommendations during the time period October 2015–2017.” The customer is seeking $200,000 in damages and the case is currently pending.
GPB Capital Holdings is a New York-based investment firm that offers exempt, private-placement securities that inherently have a high degree of risk due to their nature as unregistered securities offerings. The investment firm raised $1.8 billion from investors through private placements that invested in automotive dealerships, the waste management industry, and middle market lending. These investments were high risk and high commission (nearly 8%) private placements.
GPB Capital Holdings was launched in 2013 with a focus on buying auto dealerships. According to the SEC, GPB Automotive Portfolio raised $622.1 million from wealthy investors since 2013, and the minimum investment in GPB Automotive Portfolio was $100,000. GPB Holdings II raised $645.8 million since 2015. GPB Holdings II and GPB Automotive Portfolio together have paid brokers $100.1 million in commissions at a rate of 7.9%.
As of July 2019, GPB Capital Holdings is more than a year past its deadline to make public its audited financial statements for two of its largest funds. In June 2019, GPB Capital Holdings reported losses in the value of two of its investment funds: GPB Holdings II and GPB Automotive Portfolio. GPB Holdings II saw a decline in value of 25.4% and GPB Automotive Portfolio have decreased by 39%. GPB Holdings II and GPB Automotive Portfolio make up the majority of GPB Capital Holdings’ portfolio, raising $1.27 billion from investors.
Jeffrey R. Sonn is a FINRA arbitration attorney with more than three decades of experience serving investors throughout the United States and North America. If you suffered major losses working with Eric Weschke, please contact our law firm for a free, no obligation review of your legal case.