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

GPB Capital Private Placement Investigation

GPB Capital Private Placements Investigation, Featured by Top Securities Fraud Attorneys, The White Law Group

Concerned about your investment in a GPB Capital Private Placement offering?

Have you suffered losses investing in a GPB Capital private placement? The securities attorneys at the White Law Group may be able to help you to recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

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.

GPB Capital Update on March 1 2019

According to reports, GPB Capital sent a letter to investors disclosing that authorities made an unplanned visit to their New York offices and collected materials at the end of February.

In the letter, the company claims to be “cooperating with inquiries from various authorities and have been producing requested documents on a rolling basis.”

The letter further stated that “On February 28, 2019, authorities came to GPB Capital’s New York offices and collected material. We believe the visit, while unscheduled, was a continuation of this process and we will remain cooperative with any inquiries.”

Update on May 6, 2019

According to an article in Investment News on May 2, 2019, GPB Capital Holdings has shown no signs of filing financials a year after stating its intention to take a break in raising money while it straightens out the accounting and financial statements of two of its existing funds.

Dealing with proper accounting standards was allegedly the reason for the delay last year. What’s the hold up now? According to Investment News, “The company won’t say, but keep in mind that GPB’s CEO and lead partner, David Gentile, is a CPA. That means even the accountant isn’t doing the accounting at GPB.”

This begs the question, what is the real value of these GPB investments? Investors are apparently not the only ones with questions.

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 private placement 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 (Armada Waste Management, LP)
GPB NYC Development LP

If you are concerned about your investment in a GPB Capital private placement offering 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.

Click here for your FREE consultation.