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GPB Capital Lawsuit Filed Against Madison Avenue Securities

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The investment fraud lawyers with Haselkorn & Thibaut, P.A. have filed a customer dispute claim through the Financial Industry Regulatory Authority (“FINRA”) Office of Dispute Resolution. The private arbitration proceeding was filed against Madison Avenue Securities, LLC. (“Madison Avenue”) and its financial advisor Jeffrey Dixson (“Dixson”) on behalf of an investor who has sustained significant investment losses as a result of relying on his financial advisor’s recommendation to invest in GPB Capital (“GPB Capital”). 

It is believed that the GPB Capital funds should not have been approved for sale by Madison Avenue, and that the transactions were not properly recommended or supervised by Madison Avenue. Private placement securities such as GPB Capital are generally considered illiquid, and are often risky alternative investments. GPB Capital paid large commissions to financial advisors, and in some cases that appears to be a significant factor motivating the recommendations.

GPB Capital Holdings has worried investors because of the on-going investigations from various state and federal regulators and investigators. The raid by the FBI offices and allegations of questionable accounting and sales practices as well as inaccurate disclosures to investors has caused many investors to file claims and lawsuits.

The investigations started over a year ago, in April 2018, when GPB Capital first missed important financial disclosure filing deadlines with the SEC.

Since that time, there has been an avalanche of bad news for investors in GPB Capital. In June, GPB Capital confirmed the worst, informing GPB investors had lost between 25% and 73% of their investments. This news was shocking to many investors.

One of the primary allegations by investors is that they were misled into investing in GPB Capital and were unaware of the risks associated with private placements. Private placement investments are illiquid alternative investments that are only suitable for accredited investors and even then not always for every investor. 

If you are a GPB investor, call the investment fraud lawyers at Haselkorn & Thibaut, P.A. or visit them at www.InvestmentFraudLawyers.com, or call today at 1-888-628-5590 to schedule a free, confidential evaluation of your situation and to learn your options. 

H&T is a leading national securities law firm, www.InvestmentFraudLawyers.com, which practices almost exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors in large and complex securities matters. The firm represents high net-worth, ultra-high-net-worth, and institutional investors, such as non-profit organizations, pension funds, and trusts. H&T’s main office is located in prestigious Palm Beach, Florida and cases are handled nationwide.

The sole purpose of this release is to investigate the manner in which GPB Capital was approved for sale for investor customers at Madison Avenue. Former employees or current or former customers of Madison Avenue with knowledge relating to approval of and/or supervision of GPB Capital investments sold by Madison Avenue or to locate those individuals who have information relating to the manner in with the firm handled GPB investment recommendations and supervised such transactions at Madison Avenue. If you have any knowledge or experience with these matters you are encouraged to contact H&T at 1-888-628-5590, or visit the law firm’s website at www.InvestmentFraudLawyers.com.

The idea of Bigtime Daily landed this engineer cum journalist from a multi-national company to the digital avenue. Matthew brought life to this idea and rendered all that was necessary to create an interactive and attractive platform for the readers. Apart from managing the platform, he also contributes his expertise in business niche.

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Business

Business Strategies of Michael Gastauer

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Michael Gastauer, a German billionaire and entrepreneur, has led Black Banx to remarkable heights with his innovative strategies in the digital banking sector. As the founder and CEO, his vision has transformed Black Banx into a significant player in the global financial industry, serving millions and revolutionizing banking practices. 

Gastauer’s approach has been distinctly customer-centric, focusing on solving real-world problems through accessible financial services. This strategy has not only captured a vast market share but also established Black Banx as a model of innovative fintech success.

Innovate Early and Often, Invest Strategically

Gastauer’s journey began with a robust foundation in the fintech sector, where he initially created and later sold a payment services company for US$480 million. 

This significant capital boost allowed him to invest in his next venture: Black Banx. Launched in 2014, Black Banx differentiated itself by offering real-time account opening and cross-border payment solutions to a global audience, addressing major inefficiencies in traditional banking. 

Gastauer’s foresight in identifying and investing in these key areas early on allowed Black Banx to scale quickly and efficiently. His strategy was clear: leverage high initial investment to accelerate growth and secure a substantial market presence before competitors could catch up.

Within a year of its inception, Black Banx expanded rapidly, reaching over 1 million customers. This was just the beginning, as the platform soon integrated cryptocurrency options, enhancing its appeal and utility for a broader client base. By the end of 2018, Black Banx was valued at US$9.8 billion, a testament to its rapid growth and the successful implementation of its business model. 

Gastauer’s bold move to integrate cryptocurrencies early in the game positioned Black Banx as a pioneering force in fintech, well ahead of traditional banks.

Pinpoint Problems and/or Challenges

One of the core components of Gastauer’s strategy was to tackle financial exclusion head-on. Black Banx made significant strides in offering banking solutions to the unbanked and underbanked, particularly in regions with limited access to traditional banking services. 

By leveraging technology and strategic partnerships with mobile network operators, Black Banx has been able to extend its reach and offer innovative banking solutions to millions worldwide. This strategic alignment with mobile operators has been crucial, as it taps into an existing infrastructure to reach remote areas, significantly lowering the cost of expansion.

The platform’s ability to facilitate quick, cost-effective international money transfers has been a game-changer, particularly in markets like the Middle East, Asia, and Africa. This not only supports individuals and businesses in these regions but also contributes to the overall growth and stability of the global economy. 

Gastauer’s focus on simplifying and reducing the cost of these transactions demonstrates a deep understanding of the core needs of his customers, thereby enhancing customer loyalty and trust in the brand.

Take a Tech-Driven Approach

Under Gastauer’s leadership, Black Banx has remained at the forefront of technological integration within the banking sector. The adoption of blockchain, AI, and data analytics has enabled the platform to offer personalized financial services, enhancing customer experience and satisfaction. 

This technology-driven approach ensures that Black Banx stays ahead of industry trends and continues to offer relevant and secure banking options. Gastauer’s commitment to integrating advanced technology not only streamlines operations but also provides a scalable model that supports continuous growth and adaptation in a rapidly evolving market.

Leave No Market Unturned

Gastauer’s vision for Black Banx was never limited to a single region. By 2023, the company had expanded its services to include 28 FIAT and two cryptocurrencies, with a robust presence in over 180 countries. This global approach has not only diversified the company’s customer base but also minimized regional economic risks, allowing Black Banx to thrive in a competitive and fast-changing financial landscape. 

The strategic decision to operate across diverse markets also mitigates the risk of localized economic downturns affecting the overall health of the company.

Set Milestones

The year 2023 was a landmark year for Black Banx, as it reached 39 million customers and reported revenues of US$2.3 billion. The company’s ability to maintain a high rate of customer acquisition and satisfaction speaks volumes about its effective strategies and customer-focused approach. 

The first quarter of 2024 continued this trend, with Black Banx announcing a pre-tax profit of US$639 million and revenues of US$2.1 billion, driven by strategic implementations like fixed monthly account maintenance fees. Gastauer’s strategy to introduce fixed fees was a calculated risk that paid off, providing stable revenue streams and further solidifying Black Banx’s financial foundation.

Michael Gastauer’s strategic foresight and relentless innovation have propelled Black Banx to new heights, making it a leader in the digital banking sector. His commitment to financial inclusion, coupled with an aggressive expansion strategy and technological integration, has not only shaped the future of Black Banx but has also set a new standard in the industry. 

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