March 1, 2019 Comments (0) Blog, Current Investigations

GPB Capital Investigation (Updated July 31, 2019)

GPB Capital Investigation, Featured by Top Securities Fraud Lawyers, The White Law Group

GPB Capital Investigation – Updated on July 31, 2019

For more information on how you can recover GPB Capital losses, press play for a short video:

 

 

 

 

 

 

 

 

 

 

Are you worried about the recent GPB Capital investigation? If so, the securities attorneys at The White Law Group may be able to help you to recover your investment losses through FINRA Arbitration.

According to reports on March 1, GPB Capital sent a letter to investors disclosing that authorities made an unplanned visit to their New York offices and collected materials on Thursday.

In the letter, GPB says it is “taking steps to strengthen our business including enhancing our oversight and auditing practices.”

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

The letter further state 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.”

The company did not disclose in the letter which agency or agencies visited, or what information was collected, but according to reports, an anonymous industry source claims that both the FBI and the New York City Business Integrity Commission were reportedly involved in the visit.

GPB Capital, a New York-based alternative asset management firm, has reportedly raised $1.5 billion in investor equity through various private placement offerings in the automotive retail and waste management sectors.

The company has been struggling with bad press since 2018 when William Galvin and the Massachusetts Securities Division launched an investigation into the “sale practices” of 63 Broker Dealers who were selling the GPB capital private placements.

In August 2018, the company announced the decision to stop raising new money, and suspended redemptions so that they could reportedly focus on straightening up their financial reporting on two of their funds, GPB Holdings II and GPB Automotive Portfolio.

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.

Update on June 21, 2019

The company today reported significant losses in the value of the same two investment funds, GPB Holdings II and GPB Automotive Portfolio, which have seen declines in value, respectively, of 25.4% and 39%.

Update on July 31, 2019 -More Trouble for GPB – GPB’s Partner files Suit Claiming “Ponzi Scheme”

Prime Automotive Group CEO David Rosenberg reportedly filed a lawsuit in Massachusetts last week alleging his business partner, GPB Capital, is running a Ponzi scheme by using new investment money to pay returns to existing investors, according to an article in the Portland Press Herald.

Rosenberg reportedly filed the lawsuit last week in Norfolk Superior Court, after GPB Capital allegedly failed to pay Rosenberg $5.9 million on July 1 as part of a partnership buyout reportedly involving dozens of auto dealerships.

According to the lawsuit, GPB Capital purportedly withheld the payment in retaliation for Rosenberg’s allegations of misconduct in the company’s financial operations that he reportedly passed along to the Securities and Exchange Commission and the FBI.

GPB reportedly invests in auto dealerships through its subsidiary, GPB Prime, which is the 11th-largest dealership group in the country, according to Automotive News’ rankings.

In 2017, David Rosenberg sold a majority stake in Prime Motors to GPB Capital for $235 million and took the position to run the group, but claims GPB execs tried to push him out earlier this year after he made the allegations of “serious financial misconduct.”

Rosenberg claims that GPB was creating fake contracts and adopting deals that benefited the executives rather than investors. He also alleges that when the accounting firm that was hired to audit the books last year withdrew, it was due to “numerous undisclosed and inappropriate” transactions to benefit top GPB Capital executives.

In reply, GPB reportedly told the Boston Globe that the company is involved in a contract dispute with Rosenberg over payments for his remaining holdings and said the other complaints in the GPB lawsuit are without merit.

In reply, GPB reportedly told the Boston Globe that the company is involved in a contract dispute with Rosenberg over payments for his remaining holdings and said the other complaints in the GPB lawsuit are without merit.

Free Consultation

GPB Capital private placements are highly complex, high risk investments. They are only suitable for sophisticated, accredited investors and institutions.

If you are concerned about your investment in a GPB Capital Holdings offering please call the securities attorneys at The White Law Group for a free consultation at 1-888-637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.  For more information on the firm and its representation of investors, visit https://www.whitesecuritieslaw.com.

Click here for your FREE consultation.
-->