GPB Capital Entities GPB Cars 12, LLC, GPB 5 LLC and GPB 8 LLC Receive Millions in Forgivable Fed loans
Have you suffered losses investing in GPB Cars 12 LLC, GPB 5 LLC or GPB 8 LLC? If so the securities attorneys at the White Law Group may be able to file a complaint against your brokerage firm. The White Law Group continues to investigate potential securities fraud claims involving broker dealers who may have unsuitably recommended GPB Capital offerings to investors.
According to Investment News yesterday, GPB Capital has received between $3 million to $7 million in federal forgivable loans through the Paycheck Protection Program (PPP).
GPB Capital Holdings reportedly received from $1 million to $2 million in PPP loans, and entities named GPB 5 and GPB 8 also received between $1million and $2 million, according to Investment News, citing information from the Department of the Treasury’s website. GPB Cars 12, reportedly received a loan of $350,000 to $1 million.
The PPP program was established to help businesses pay their employees during the pandemic and it is unclear if any of the funds will go to GPB investors, according to the article.
GPB Capital has been under investigation by the FBI and securities regulators beginning in 2018 when William Galvin and the Massachusetts Securities Division first launched an investigation into the “sale practices” of 63 Broker Dealers who were selling the GPB capital private placements which led to a halt in sales and suspension of distributions.
There have been numerous lawsuits filed against GPB since then, alleging serious financial misconduct and accusations of an alleged Ponzi scheme.
The firm has reportedly raised $1.5 billion in investor equity through various private placement offerings in the automotive retail and waste management sectors. Although one of its funds made a special distribution earlier this year, the firm has not paid any other distributions since 2018.
GPB Shareholders may have Claims
The White Law Group is currently representing numerous investors in claims against their brokerage firms in connections with their investments in risky GPB Capital offerings, including the following:
Broker dealers are required to perform adequate due diligence on all investment recommendations they make. They must ensure that each investment is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be liable for investment losses through FINRA arbitration.
Filing a Complaint against your Brokerage Firm
If you have suffered losses investing in a GPB Cars 12 LLC, GPB 5 LLC or GPB 8 LLC, or other GPB private placement offerings, you may be able to file a complaint against your brokerage firm. Please call the securities attorneys at The White Law Group for a free consultation at 1-888-637-5510.
These claims are distinct from the class action filed directly against GPB Capital and could be pursued concurrently.
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.