Armada Waste Management LP (GPB Waste Management LP)
Did you lose money investing in Armada Waste Management LP at the recommendation of your financial advisor? 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.
GPB Capital is a New York-based alternative asset management firm focusing on acquiring income-producing private companies. According to industry sources, GPB raised between $600 million to $800 million from investors through sales of reps at independent contractor broker-dealers.
According to its website, the company claims it has raised $1.3 billion and owns more than 100 companies in its various portfolios. It appears that brokers collect a 7% commission for selling these high-yield Regulation D private placements.
As we told you March 1, according to the company, federal authorities reportedly made an unplanned visit to GPB’s New York offices and collected materials as part of an ongoing investigation.
Further, GPB Capital has been embroiled in scandal since 2018, when the Massachusetts Securities Division launched its investigation into GPB’s sales practices, and the company reportedly paused new sales and suspended distributions in order to straighten out its accounting of two of its offerings, GPB Holdings II and GPB Automotive Portfolio.
GPB filed a Form D (private placement) notice of exempt offering of securities in 2016 to raise capital from investors with the offering GPB Waste Management LP.
According to a letter to investors on February 13, 2019, in an amendment and restated limited partnership agreement, GPB Waste Management LP is changing its name to Armada Waste Management LP.
Update on June 25, 2019
According to news reports this week, GPB Capital has announced sharp declines in values of its private placement offerings, including Armada Waste Management.
According to GPB, investors bought $163.4 million of Armada Waste Management, but the current estimated value of the fund is reportedly $53.4 million.
That means an investment of $50,000 in Armada Waste Management has declined in value 67.4%, and is now worth $16,330, according to reports.
Investigating Potential Lawsuits
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling alternative investment products like Armada Waste Management LP to investors.
Private placements are a means for companies to raise capital through the sale of equity or debt securities without having to register their securities with the SEC. These investments are often riskier and more complicated than traditional investments, and are only suitable for high net worth, sophisticated investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.
Despite the risks of investing in this type of alternative investments, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.
If you are concerned about your investment in Armada Waste Management LP or another GPB Capital private placement offering and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510 for a free consultation.
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 White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.
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