July 29, 2019 Comments (0) Blog, Current Investigations

GPB Capital Holdings Lawsuit

GPB Capital Holdings Lawsuit, Featured by Top Securities Fraud Attorneys, The White Law Group

More Trouble for GPB – GPB’s Partner files Lawsuit Claiming “Ponzi Scheme”

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

According to an article in Investment News on Friday, a business partner of GPB Capital Holdings has filed a lawsuit alleging the firm tried to push him out after he complained to the Securities and Exchange Commission about GPB’s “financial misconduct”.

GPB Capital Holdings, 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.

As we previously told you, GPB is currently under investigation by regulators, including the Financial Industry Regulatory Authority (FINRA), the SEC and the FBI, who reported raided the firms New York offices in February.

In June 2019, the firm reportedly announced that some GPB Capital offerings share prices declined as much as 73%. Investors are still waiting for updated financial statements in two of the largest funds that are now a year past due.

GPB Capital Holdings Lawsuit

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.

Investigating Potential 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

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 losses, please call the securities attorneys at The White Law Group for a free consultation at 888-637-5510.

This information is all publicly available and provided to you by The White Law Group.

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.

 

 

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