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FINRA Claim Filed Against Growth Capital Services Inc. for Investment Losses
The White Law Group announces the filing of a FINRA arbitration claim against Growth Capital Services Inc. Involving a high-risk investment, Direct Lending Income Fund LP
By: White Law Group
The claim further alleges that Growth Capital Services Inc. unsuitably invested its client in a high-risk private placement investment, Direct Lending Income Fund LP. The claim seeks damages between $1,000,000 and $1,500,000.
It is alleged that Growth Capital Services Inc. failed to perform the necessary due diligence on Direct Lending Income Fund LP. prior to recommending it to this particular investor. Broker-dealers have a fiduciary duty to adequately disclose the risks involved in an investment before recommending it, and must perform the necessary due diligence to determine whether the investment is suitable for the investor.
It is further alleged that the broker of record, Luke Powell (CRD#: 2605657), has a history of regulatory misconduct involving outside business activities and private securities transactions. According to his FINRA BrokerCheck report, Powell resigned from a member firm in 2015 after allegations of outside business activities, and in 2018 was allegedly suspended and fined for private securities transactions.
FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional. It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing such claims in court.
"We believe there are many more investors who have suffered losses in alternative investments who don't realize they have recourse, or may be unaware of any wrongdoing,"
"Brokerage firms are required to supervise their advisors to make sure that they are complying with FINRA rules. If it can be determined that the financial advisor's employers failed to adequately supervise him, these firms can be held responsible for any resulting losses in a FINRA arbitration claim."
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
For more information on the claim filed by The White Law Group, please contact the firm at 1-888-637-5510.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com (http://www.whitesecuritieslaw.com/