December 21, 2018 Comments (0) Blog, Current Investigations, Securities Fraud

GPB Capital Holdings – Investigations

GPB Capital

Concerned about your investment in a GPB Capital Holdings offering?

According to Investment News on Tuesday, both the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) have recently launched investigations into broker dealers who have sold private placement offerings from GPB Capital Holdings.

This comes after the State of Massachusetts began investigating 63 broker dealers for sales of high risk GPB Capital private placement offerings in September.

Now, according to Investment News, the SEC and FINRA are both making inquiries of broker dealers as well.  “The focus of the SEC’s questions is the accuracy of disclosures made to investors, the performance of various funds and the distribution of capital to investors,” according to a source in the article.

According to Investment News, an anonymous brokerage executive said “that the loads for the private placements were 12% with two parts: a 10% commission to the broker and broker-dealer and 2% in offering and organization costs.”

GPB has reportedly raised $1.8 billion from investors through the high-commission offerings.

GPB reportedly missed filing deadlines for two offerings, GPB Holdings II and GPB Automotive Portfolio LP, with the SEC earlier this year. The company has also been involved in a $40 million lawsuit with a former business partner.

Investigating Potential Claims

The White Law Group is continuing its investigation which has been going on for months into the liability brokerage firms may have for unsuitably recommending GPB Capital Holdings offerings to investors.

Brokerage firms are obligated to recommend only investments that are suitable for a client based on that client’s age, investment experience, net worth, income, and investment objectives.

Given the high commissions with GPB Capital and some of the reported internal issues, it appears that GPB Capital and its various offerings may have been sold to many investors unsuitably.  The specific offerings that The White Law Group continues to investigate are:

GPB Holdings LP
GPB Holdings II
GPB Holdings III
GPB Automotive Portfolio LP
GPB Waste Management, LP
GPB NYC Development LP

If you are concerned about your investment in a GPB Capital Holdings please contact the securities attorneys at The White Law Group for a free, no-obligation consultation at (888)637-5510.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, please visit www.WhiteSecuritiesLaw.com.