GPB Capital has been accused of being a Ponzi scheme, which is a type of fraud where new investor money is used to pay off old investors. Investors in a Ponzi scheme believe they are getting a return from the business they invested in, but they’re really getting another victim’s money.
Ponzi schemes are unsustainable because they require more and more new money to pay returns to investors. When new money can’t be found, the scheme collapses, and investors lose their money. Silver Law Group represents investors in securities arbitration claims against stockbrokers who sold GPB. Continue reading