GPB Capital investors are suffering catastrophic losses on their investments. GPB has reduced the valuations of their portfolio and investor complaints against selling brokers continue to pile up.
GPB Capital includes the following funds:
- GPB Cold Storage
- GPB Automotive Fund
- GPB Automotive Income
- GPB Holdings II and III
- GPB Waste Management
- GPB NY Development
GPB Capital has raised over $1.8 billion from investors. Brokerage firms that sold GPB Capital have made millions in commission. While these high-risk private placement investments rarely translate to rewards for investors, the brokers bank substantial earnings at 7% to 10% commission. This could mean that your broker made $100,000 or more for convincing you to invest in GPB Capital.
FINRA and the SEC are investigating sixty-three brokerage firms that sold GPB Capital including but not limited to:
- Sagepoint Financial Inc.
- Royal Alliance Associates Inc
- FSC Securities Corp
- Woodbury Financial Services Inc
- Advisor Group
In August 2018, the Massachusetts Securities Division was the first to launch its investigation of GPB Capital. Findings from the investigations have yet to be released. To date, GPB Capital remains under investigation and no news is not good news.
Staffing changes amid serious regulatory investigations raise eyebrows. The CEO of GPB Capital, David Gentile, has offered little to assuage concerns. Gentile has admitted only that “material weaknesses” exist in their internal controls.
GPB Capital’s failures tell a much more alarming story.
Warning bells sounded for GPB Capital following a $42 million dollar lawsuit in 2017 with former business partner, Patrick Dibre. At that time, InvestmentNews reports that GPB Capital accused Dibre of fraud and breach of contract in their automotive dealings.
A year later, in April 2018, GPB missed the SEC filing deadline for two of their holdings: GPB Automotive Portfolio and GPB Holdings II. GPB Capital waited several months according to reports—until August 2018—to halt new investments and review their regulatory controls.
What’s more? Savvy investors trying to cut their losses with GPB Capital were met with closed doors. In August 2018, according to InvestmentNews, GPB Capital simultaneously suspended redemption of its funds.
Is Your Money Gridlocked With GPB Capital?
If you own shares of a GPB fund, you don’t have to wait and see what the end result is going to be with GPB. You may have a claim to recover your money through FINRA arbitration. Broker-dealers have an obligation to recommend suitable investments to their clients and perform due diligence into the products they sell them. FINRA-registered brokers and firms are subject to arbitration to resolve securities-related disputes.
Silver Law Group has filed arbitration claims on behalf of clients who invested in GPB, including the first against Advisor Group broker-dealer SagePoint Financial, which requests $400,000 in damages.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. Scott Silver is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and represents investors nationwide in securities investment fraud cases. Please contact Scott Silver of the Silver Law Group for a free consultation at firstname.lastname@example.org or toll free at (800) 975-4345.