One customer is seeking $700,000 in damages over GPB private placements.
The Sonn Law Group is investigating allegations that brokers recommended investments in GPB Capital Holdings. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.
Michael Sievert (CRD#: 2127441) has been employed by Arkadios Capital since 2018. Formerly he was employed by Triad Advisors from 2012 to 2018.
According to his BrokerCheck report, two customers filed complaints against Michael Sievert, alleging the sale of unsuitable private placement interests in GPB Capital Holdings.
The first complaint was filed on July 16, 2019, seeking damages of $500,000. The allegations state, “Statement of Claim incorrectly asserts that Representative sold GPB Automotive and GPB Holdings to Claimants during his association with Triad.
Those sales were made by a different former Representative and his CRD updated accordingly. However, because Sievert is mentioned in the Statement of Claim and a GPB investment made at Arkadios is referenced in a footnote to the Statement of Claim, this disclosure is deemed necessary.” This matter is still pending.
The second complaint was filed on November 26, 2019, seeking damages of $200,000. The allegations state, “In 2014, Claimants elected to invest in GPB Holdings. After suspension of distributions, Claimants now assert, five years after the fact, that the investment was unsuitable.” This matter is still pending.
GPB Capital has recently missed multiple SEC filing deadlines. Their offices were raided by the FBI earlier this summer, and they are the subject of multiple lawsuits alleging various levels of misconduct. The SEC has yet to formally file against GPB Capital, but some speculate that they could do so soon.
GPB Capital Holdings is a New York-based investment firm that offers exempt, private-placement securities. These investments inherently have a high degree of risk due to their nature as unregistered securities offerings (and without regulatory oversight). The investment firm raised $1.8 billion from investors through private placements that invested in automotive dealerships, the waste management industry, and middle market lending. These investments were high risk and high commission (nearly 8%) private placements.
GPB Capital has been embroiled in legal disputes in the recent past. In November 2019, GPB informed investors that they would not be supplying the audited financial reports by their deadline, even though investors have been awaiting the audits since April.
In June 2019, GPB Capital Holdings reported losses in the value of two of its investment funds: GPB Holdings II and GPB Automotive Portfolio. GPB Holdings II saw a decline in value of 25.4% and GPB Automotive Portfolio have decreased by 39%. GPB Holdings II and GPB Automotive Portfolio make up the majority of GPB Capital Holdings’ portfolio, raising $1.27 billion from investors.
GPB Capital Holdings manages the following nine private placements:
- GPB Automotive Portfolio, LP
- GPB Cold Storage LP
- GPB Holdings, LP
- GPB Holdings II, LP
- GPB Holdings III, LP
- GPB Holdings Qualified, LP
- GPB NYC Development, LP
- GPB Waste Management Fund, LP
GPB Capital Holdings other funds also reported declines in estimated value of 25% to 73%.
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The Sonn Law Group is currently investigating allegations that brokers recommended investments in GPB Capital Holdings. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.