GPB Capital Holdings Private Placement

Our attorneys represent over 50 victims who have been recommended GPB Capital Holdings (GPB Capital) related investments. GPB claims to invest in a variety of businesses including auto dealerships, waste management, cold storage, life sciences, and real estate businesses. The firm continues to be unable to account for how it used $1.5 billion in investor funds and investors at this point should prepare themselves for the worst possible outcomes including near complete losses on their investments. Investors who have invested in GPB Capital are encouraged to contact us for a free consultation.

Financial advisers sold approximately $1.5 billion of these high-risk private placements offered by GPB Capital Holdings. The largest two funds alone have more than 12,000 investors. The story of GPB’s downfall began a year ago when GPB Capital was supposed to file registration forms with the SEC for two of its largest funds. However the company did not meet its deadline back in April 2018 and now over a year later has no firm date when annual reports for the two funds will be filed with the SEC. It is highly unusual for an audit of a fund to take over two years without explanation. Over time GPB and the brokerage firms that sold GPB products have told investors to be patient following an all too familiar pattern in an industry wracked with fraud and abuse.

Below are just a few of the pending regulatory investigations and other GPB developments:

• In October 2018 the Massachusetts Securities Division announced an investigation into brokerage firms that sold GPB Capital.
• On November 9, 2018 Crowe LLP resigned as auditor due to perceived risks they determined fell outside their internal risk tolerance parameters.
• In February 2019 the FBI, SEC, and New York City business integrity commission visited GPB Capital’s offices and collected material.
• In July 2019 David Rosenberg, chief executive of Prime Automotive Group, filed a complaint in Norfolk Superior Court in Massachusetts accusing GPB Capital of running a Ponzi-like scheme in which it used money from investors to prop up the performance of auto dealerships it owns and finance payments to other investors.
• In October 2019, The Department of Justice charged the chief compliance officer of GPB Capital, a former SEC examiner, with obstruction of justice relating to the SEC’s investigation of GPB Capital. Michael Cohn allegedly stole information from the SEC and gave it to GPB Capital right before he started working for GPB in October 2018.
• In November 2019 GPB Capital suspended work on producing financial statements essentially admitting that the investment was a fraud and not capable of being audited. GPB Capital claims the termination of audit work is due to investigations, the indictment of the company's former chief compliance officer, and other reasons. Later GPB Capital claimed to resumed audit work but has not provided significant information concerning these efforts.
• On May 27, 2020, the State of Massachusetts filed a complaint alleging that the state “seeks to prevent further financial harm and provide relief to Massachusetts residents who were defrauded by GPB Capital.” The claim alleges that GPB was sold to investors “under false and misleading pretenses…and without knowing that GPB Capital continually engaged in self-dealing from inception.”

There are approximately 63 brokerage firms that sold the GPB Capital Investments to clients. Those brokerage firms include:

• Accelerated Capital Group
• Advisory Group Equity Services
• Aegis Capital Corp.
• American Capital Partners
• Arete Wealth Management
• Arkadios Capital
• Ascendant Alternative Strategies
• Ausdal Financial Partners
• Avere Financial Group
• Axiom Capital Management
• BCG Securities
• Benjamin & Jerold Brokerage
• Cabot Lodge Securities
• Calton & Associates
• Cape Securities
• Capital Investment Group
• Center Street Securities
• Coastal Equities
• Colorado Financial Service Corp.
• Concorde Investment Services
• Crown Capital Securities
• Crystal Bay Securities
• David A. Noyes & Company
• Dawson James Securities
• Dempsey Lord Smith
• DFPG Investments
• Dinosaur Financial Group
• Emerson Equity
• FSC Securities Corp.
• Geneos Wealth Management
• Great Point Capital
• Hightower Securities
• IBN Financial Services
• Innovation Partners
• International Assets Advisory
• Kalos Capital
• Kingsbury Capital
• Landolt Securities
• Lewis Financial Group
• Lowell & Company
• Madison Avenue Securities
• McDonald Partners
• McNally Financial Services Corp.
• Moloney Securities
• Money Concepts Capital Corp.
• MSC – BD
• National Securities Corp.
• Newbridge Securities Corp.
• Orchard Securities
• Pariter Securities
• Purshe Kaplan Sterling Investments
• Royal Alliance Associates
• SagePoint Financial
• Sandlapper Securities
• SCF Securities
• Sentinus Securities
• Silber Bennett Financial
• Stephen A. Kohn & Associates
• Triad Advisors
• Uhlmann Price Securities
• Vanderbilt Securities
• Vestech Securities
• Western International Securities
• Westpark Capital
• Whitehall-Parker Securities
• Windsor Street Capital
• Woodbury Financial Services

Brokerage firms are unfortunately all too willing to subject their clients to the risks of investing in securities like GPB due to the hefty fees and commissions these firms earn. Commissions and fees on GPB reach as high as 11.75% and 7% of that amount goes directly to the recommending broker’s pocket.

GPB Capital Holding’s funds include:

• GPB Cold Storage
• GPB Automotive Fund
• GPB Automotive Income
• GPB Holdings II and III
• GPB Waste Management
• GPB NY Development

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client after conducting due diligence. Due diligence includes an investigation into the investment’s properties including its benefits, risks, tax consequences, issuer, history, and other relevant factors. In particular, due diligence on private placements is of the utmost importance because there is no publicly available information on this companies and businesses and the only access to material information comes from the brokerage firm.

Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.