April 2, 2021 Comments Off on GPB Automotive Portfolio LP Lawsuits Investigation Update Blog, Current Investigations, Securities Fraud

GPB Automotive Portfolio LP Lawsuits Investigation Update

GPB Automotive Portfolio LP Lawsuits Investigation Update, featured by top securities fraud attorneys, The White Law Group

GPB Automotive Portfolio LP “Ponzi-Like Scheme” – Recovery for Investors

GPB Automotive Portfolio LP is a private placement fund sponsored by GPB Capital Holdings, LLC, a New York-based global asset management firm.

The White Law Group continues to investigate potential securities fraud claims involving broker dealers who improperly recommended GPB Automotive Portfolio LP and other GPB offerings to its clients.

GPB Executives Charged with Fraud in February 2021

On February 4, 2021, the CEO of a GPB Capital Holdings, and two others were arrested in connection with a massive “Ponzi-like scheme” that allegedly defrauded 17,000 investors across the U.S. out of more than $1.7 billion, according to the U.S. Attorney’s Office for the Eastern District of New York.

Three GPB executives were charged with fraud, wire fraud and conspiracy.

The Securities and Exchange Commission and seven state regulators reportedly filed similar charges on February 4. The SEC also reportedly charged GPB Capital with violating the whistleblower protection laws.

According to the complaint, the GPB executives allegedly lied to investors about the source of money used to make an 8% annualized distribution payment to investors.

The firm and two executives also allegedly falsified financial statements to inflate the limited partnership funds’ income so that it would appear to be generating sufficient income to cover the distribution payments.

Further, they purportedly told investors that their 8% monthly distributions would be fully covered by profits of the portfolio’s companies.

Instead the investors were at least partially paid with funds from new investors.

The SEC alleges that the “Ponzi-like scheme” continued for more than four years because GPB was able to hide the funds’ financial condition from investors, neglecting to deliver audited financial statements and register two of its funds with the SEC.

 GPB Automotive Portfolio LP Investment Losses

According to a Form D filed with the Securities and Exchange Commission, GPB has raised capital in GPB Automotive Portfolio LP from over 6,000 investors and the total offering amount purportedly sold was $622,143,273. Sales commissions and fees paid on the offering are reportedly estimated at close to 9%.

The following is a list of broker dealers that allegedly sold GPB offerings to investors, according to the Form D filings:

Axiom Capital Management, Inc

Ascendant Alternative Strategies, LLC

ACCELERATED CAPITAL GROUP

ADVISORY GROUP EQUITY SERVICES LTD.

AEGIS CAPITAL CORP.

AUSDAL FINANCIAL PARTNERS, INC.

CENTER STREET SECURITIES, INC.

ARKADIOS CAPITAL

AEON CAPITAL INC

AVERE FINANCIAL GROUP, LLC

BCG Securities, Inc.

CABOT LODGE SECURITIES LLC

CALTON & ASSOCIATES, INC.

LION STREET FINANCIAL, LLC

CAPITAL INVESTMENT GROUP, INC.

IBN FINANCIAL SERVICES, INC.

COASTAL EQUITIES, INC.

CROWN CAPITAL SECURITIES, L.P.

CRYSTAL BAY SECURITIES INC.

EMERSON EQUITY LLC

GENEOS WEALTH MANAGEMENT, INC.

PARITER SECURITIES, LLC

SANDLAPPER SECURITIES, LLC

VESTECH SECURITIES, INC.

STEPHEN A. KOHN & ASSOCIATES, LTD.

WESTERN INTERNATIONAL SECURITIES, INC.

NATIONAL SECURITIES CORPORATION

ORCHARD SECURITIES, LLC

INTERNATIONAL ASSETS ADVISORY, LLC

CAPITAL FINANCIAL SERVICES, INC.

CASCADE FINANCIAL MANAGEMENT, INC.

D.H. HILL SECURITIES, LLLP

DETALUS SECURITIES, LLC

INNOVATION PARTNERS LLC

KINGSBURY CAPITAL, INC.

PRIVATE CLIENT SERVICES, LLC

ROYAL ALLIANCE ASSOCIATES, INC.

VANDERBILT SECURITIES, LLC

WESTPARK CAPITAL, INC

UNITED PLANNERS’ FINANCIAL SERVICES OF AMERICA

DAVID A. NOYES & COMPANY

DEMPSEY LORD SMITH, LLC

DFPG INVESTMENTS, INC.

DINOSAUR FINANCIAL GROUP, L.L.C

FSC SECURITIES CORPORATION

GREAT POINT CAPITAL LLC

LANDOLT SECURITIES, INC.

LOWELL & COMPANY, INC.

MOLONEY SECURITIES CO., INC.

MSC – BD, LLC

NEWBRIDGE SECURITIES CORPORATION

PURSHE KAPLAN STERLING INVESTMENTS

SAGEPOINT FINANCIAL, INC

MONEY CONCEPTS CAPITAL CORP

SILBER BENNETT FINANCIAL, INC

UHLMANN PRICE SECURITIES, LLC

WHITEHALL-PARKER SECURITIES, INC.

WOODBURY FINANCIAL SERVICES, INC

More information on the White Law Group’s investigation of GPB Capital:

GPB Automotive Portfolio LP Update, K1s Delayed for Investors

GPB Capital Execs Arrested for Allegations of “Ponzi-like Scheme”

Michael Cohn, Ex-GPB Capital Exec Pleads Guilty to Stealing SEC…

GPB Capital Holdings: Takes Millions in Loans from the Fed

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, such as GPB Holdings II, GPB Automotive Portfolio LP and GPB NYC Development LP.

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

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.

Potential Lawsuits to Recover Financial Losses

If you have suffered losses investing in a GPB Automotive Portfolio LP or another GPB offering, 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.  For more information on the firm and its representation of investors, visit https://www.whitesecuritieslaw.com.

 

 

 

 

 

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