The GMS Group LLC has very well portrayed its vision and mission statements on its website which primarily focuses on providing the best services with a personal touch. They provide the best schemes to its corporate and institutional clients. Best, but not for the clients, for them.
The GMS Group has spread its horizons at 7 different locations and is a reputed company. But, the truth behind the reputation can be experienced, once you become its prey through their strategy of fooling people. These White-collar scams have become frequent and it is difficult to know by yourself whom to trust and whom not to. You can only know the details once you are inside the trap.
I know all this so closely because I was the part of the company and after I joined, I came to know the illegal ways of making money the company was involved in. They took $14000 from the money that was to be invested. Later, they lied about IRS having the money. They said that it was owed by the IRS.
After confronting IRS, it was made clear that they never levied any duties from The GMS Group LLC and did not have the money. They further added that the money was with The GMS Group LLC itself.
They keep misleading people by talking fishy. Continuous pressure and regular inquiries were also not enough to take out the truth from the mouths of The GMS Group LLC owners and the comptroller of the company involved in the scam kept on lying that the IRS had the investment money. They did not bother to return it.
On top of that, the manager and the broker continued to act as per the plan that suited their personal greed. They used the investment money other than the $14000 to clear the high-risk investments. This included General Motors which was close to bankruptcy and street Bonds which was a non-municipal bond, State of Georgia, a deal by Lehman Brothers which was not a municipal bond but a commodity. These were supposed to be the conservative investment but that was not important for these culprits.
They did not include any research team while taking the decision and the bonds selected incurred a loss of $15000. They sold three municipal bonds on the same day by taking the decision on phone. There was no written proof for the permission underlying the selling of these portfolios.
All these incidents happened in 2011 and they continued making individuals and companies fool. Recently, all their frauds have been clarified and have been subjected to pay fine. This took quite a long period to bring to everyone’s notice but has atleast warned them that we are not quite.
The GMS Group LLC enjoyed a lot of perks with illegal means and was not ready to give up even after so many blames. However, this fine will bring their name to the forefront of all the financial institutions who were once engaged in illegal means.