In February, we told you about three investigations focused on GPB Capital Holdings. The first is by the state of Massachusetts, with two additional separate investigations by FINRA and the SEC. On Thursday, February 28th, the FBI, accompanied by officials from the New York City Business Integrity Commission, paid an impromptu visit to GPB’s corporate headquarters.
The announcement was made in a letter sent to investors, explaining that “authorities” made an unannounced visit to their offices, and “collected materials.” While the company did not disclose the identity of the “authorities,” an anonymous industry insider disclosed to the press that the visit was from the FBI and the Commission.
In his letter, CEO David Gentile called it a “continuation” of the process to “strengthen our business including enhancing our oversight and auditing practices.” He assures investors that “we are still laser-focused on completing our audits, overseeing our portfolio companies and creating value for you, our investors. We are confident that as we move forward our portfolio companies are stable and well positioned for the future.”
GPB Capital Holdings raised over $1.8 billion through registered representatives from independent broker-dealers selling these risky, high-commission private placements as “alternative investments.” The company’s private placements are primarily in the automotive retail and waste management sectors. Last August, the company suspended new fundraising in order to concentrate on taking care of the reporting for two funds, GPB Holdings II and GPB Automotive Portfolio. The company has seen a spate of bad news since Massachusetts began its investigation last year.
If you purchased GPB Capital through Sagepoint Financial or another broker-dealer, you may have a claim to recover your money.
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