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Silver Law Group Investigating Brokerage Firms that Sold GPB Capital Private Placements

Silver Law Group is investigating brokerage firms that sold GPB Capital Holdings private placements. Notable brokerage firms that sold the GPB Capital Holdings investments include Sagepoint Financial, Inc.; Woodbury Financial Services, Inc.; Royal Alliance Associates Inc.; National Securities Corporation; and FSC Securities Corp.

Approximately 63 Brokerage Firms Sold GPB Capital Holdings Investments to Customers

In September 2018, William Galvin, Massachusetts Secretary of the Commonwealth, announced that his office was investigating 63 brokers that sold GPB Capital Holdings investments after receiving a tip from an independent firm. Due to other troubles concerning GPB Capital Holdings and its private placements, our firm is investigating claims against these brokerage firms.

GPB Capital Holdings is an alternative investment management company that sells illiquid, high-commission private placements. The New York-based company was established in or around 2013 and manages at least nine (9) private placements, including but not limited to:

  • GPB Automotive Portfolio, LP;
  • GPB Holdings II, LP;
  • GPB Holdings III, LP;
  • GPB Holdings, LP
  • GPB Cold Storage LP;
  • GPB Holdings Qualified, LP;
  • GPB NYC Development, LP; and
  • GPB Waste Management Fund, LP (formerly known as GPB Waste Management Fund, LP).

GPB Automotive Portfolio and GPB Holdings II are the two (2) largest funds, raising $622.1 million and $645.8 million, respectively, since 2015. GPB Capital Holdings has raised approximately $1.8 billion across its nine (9) private placements in less than ten (10) years. According to one of GPB Holdings II Form D filings with the SEC, some of the brokerage firms that sold the fund to investors were:

 

  • Axiom Capital Management;
  • Ascendant Alternative Strategies;
  • Accelerated Capital Group;
  • Advisroy Group Equity services Ltd.
  • Aegis Capital Corp.;
  • Ausdal Financial Partners, Inc.;
  • Center Street Securities, Inc.
  • Arkadios Capital;
  • Aeon Capital Inc.;
  • Avere Financial Group, LLC;
  • BCG Securities, Inc.;
  • Financial West Group;
  • Cabot Lodge Securities LLC;
  • Calton & Associates, Inc.;
  • Lion Street Financial, LLC;
  • Capital Investment Group, Inc.;
  • IBN Financial Services, Inc.;
  • Coastal Equities, Inc.;
  • Crown Capital Securities, L.P.;
  • Emerson Equity LLC;
  • Geneos Wealth Management, Inc.;
  • Pariter Securities, LLC;
  • Sandlapper Securities, LLC;
  • Vestech Securities, Inc.;
  • Stephen A. Kohn & Associates, Ltd.;
  • Western International Securities, Inc.;
  • National Securities Corporation;
  • Orchard Securities, LLC;
  • International Assets Advisory, LLC;
  • Capital Financial Services, Inc.;
  • Cascade Financial Management, Inc.;
  • H. Hill Securities, LLLP;
  • Detalus Securities, LLC;
  • Hightower Securities, LLC;
  • Innovation Partners LLC;
  • Kingsbury Capital, Inc.;
  • Private Client Services, LLC;
  • Royal Alliance Associates, Inc.;
  • Vanderbilt Securities, LLC;
  • Westpark Capital, Inc.;
  • David A. Noyes & Company;
  • Wilmington Capital Securities, LLC;
  • Dempsey Lord Smith, LLC;
  • DFPG Investments, Inc.;
  • Dinosaur Financial Group, L.L.C.;
  • FSC Securities Corporation;
  • Great Point Capital LLC;
  • Landolt Securities, Inc.;
  • Lowell & Company, Inc.;
  • Investment Architechts, Inc.;
  • McDonald Partners LLC;
  • Moloney Securities Co., Inc.;
  • MSC – BD, LLC;
  • Kalos Capital, Inc.;
  • Newbridge Securities Corporation;
  • Purshe Kaplan Sterling Investments;
  • Sagepoint Financial, Inc.;
  • Money Concepts Capital Corp;
  • Silber Bennett Financial, Inc.;
  • Uhlmann Price Securities, LLC;
  • Whitehall-Parker Securities, Inc.; and
  • Woodbury Financial Services, Inc.

Problems with GPB Capital Holdings and its Private Placements

In or around August 2018, GPB Capital Holdings announced that it would stop raising new money to focus on straightening out its accounting and financial statements of its two largest funds, GPB Automotive Portfolio and GPB Holdings II. One week later, GPB Capital Holdings announced it was restating financial statements for the years 2015 and 2016 and that they could not be relied on. Unbeknownst to investors, numerous regulatory bodies had begun investigating GPB Capital Holdings and some of its private placements, including but not limited to the SEC and FINRA. To make matter worse for the alternative investment management company, its accountant/auditor resigned in November 2018 due to perceived risks that it determined fell outside of its internal risk tolerance parameters.

GPB Capital Holdings issues would come to a startling head when the FBI raided its New York offices. In a letter to investors, GPB Capital Holdings confirmed its offices had been raided and that numerous regulatory bodies had been investigating the alternative investment management company since summer of 2018. GPB Capital Holdings stated that many of the document requests concerned Ponzi scheme allegations in an answer from a former business associate in a breach of contract case.

Contact Our Firm if You’ve Invested in GPB Capital Holdings Private Placements, Including GPB Capital Holdings II and GPB Automotive Portfolio

If you’ve invested in any GPB Capital Holdings private placements, including but not limited to GPB Automotive Portfolio and/or GPB Holdings II, through any of the listed brokerage firms, we may be able to help you recover your losses. Contact our firm today to learn how we can try to recover your losses. We work on a contingency fee, meaning if we don’t recover money you owe us nothing. Our lawyers have extensive experience in claims against banks, accountants and financial advisors who aid or assist in fraud.

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 ssilver@silverlaw.com or toll free at (800) 975-4345.

 

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