June 26, 2019 Comments (0) Blog, Current Investigations

GPB Losses | High Commissions & Declining Values

GPB Capital Losses, featured by Top Securities Fraud Attorneys, The White Law Group

Bad News for GPB Capital Investors in 2019 – Updated Sept. 30, 2019

Are you concerned about GPB Capital Losses? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

Last Friday, the media reported that GPB Capital announced that some GPB Capital offerings share prices declined as much as 73%.

After months of negative news and reports from different sources, broker-dealer firms and the professional financial advisors who earned a reported $100 million in commissions in selling GPB Capital to their customers continued to report the value of the GPB Capital investment funds at the original purchase price value on customer account statements.

Many of the broker-dealers and investment advisors who sold GPB offerings may have also continued to recommend that investor customers continue to “hold” these investments despite the negative information.

GPB Capital investors are just discovering the truth about their investments after months of looking at statements that continued to reflect the full original purchase price for those investment funds.

According to the GPB document sent to broker-dealers on June 24, brokers and their firms collected 9.3% on commissions of sales of GPB private placements. That means that of the $1.8 billion in sales from wealthy investors, registered reps and their broker-dealers were collectively paid $167 million in fees and commissions for the transactions.

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

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.

GPB Capital Losses & Lawsuits

The White Law Group continues its investigation into FINRA-registered broker dealers who may have unsuitably recommended GPB Capital’s offerings to investors, including the following offerings:

Armada Waste Management LP (f/k/a GPB Waste Management LP)
GPB Holdings II
GPB Holdings I
GPB Automotive Portfolio
GPB Cold Storage
GPB NYC Development

GPB Losses?  Bad News in 2018

  • The company suspended redemptions -purportedly to focus on accounting and financial reporting issues.
  • GPB Capital announced that its auditor had resigned due to perceived risks that fell outside of the internal risk tolerance parameters.
  • Authorities reportedly raided the GPB Capital offices in New York to collect materials
  • FINRA, the SEC and other authorities have reportedly launched investigations into GPB Capital and the possibility of an alleged ponzi scheme.

Free Consultation with a Securities Attorney

Private Placement investments such as GPB offerings are highly complex, high risk investments. They are only suitable for sophisticated, accredited investors and institutions.

If you are concerned about your GPB Capital losses, please call the securities attorneys at The White Law Group for a free consultation at 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.

This information is all publicly available and provided to you by The White Law Group. The information on this website is for general purposes only and should not be interpreted to indicate a certain result will occur in your specific legal situation. This information is not legal advice and does not create an attorney-client relationship. The choice of a lawyer is an important decision and should not be based solely upon advertisements.

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