Investors in GPB Automotive Portfolio are encouraged to seek advice from a tax professional.
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.
GPB Capital told investors last month that it won’t be able to provide important tax documents by April 15th to at least 6,353 investors or limited partners of one of its largest funds. The tax form, a Schedule K-1, is issued annually to owners of limited partnerships.
On January 23, 2020, GPB Capital sent a letter to investors, stating that it would not be able to issue Schedule K-1 tax documents for the GPB Automotive Portfolio before tax day. In the letter, GPB stated that it hopes to issue the documents by the end of July. “Based on this information, we encourage our limited partners to reach out to their own tax professionals for guidance,” the letter stated.
GPB Automotive is one of the largest funds owned by GPB Capital, with $622.1 million raised and $52.2 million paid in commissions to brokers who sold the product, according to SEC filings.
Spokesperson Nancy Sterling stated, “As a holding company with underlying companies, GPB Capital is diligently working to collect tax information from all of our various entities and investments to prepare accurate final Schedule K-1s by the end of July.”
The Schedule K-1 tax form is used to tell investors what they have made or lost during the reporting period and also informs them of what the private placement is worth. Investors are required to file the form for their private placement investments. If a Schedule K-1 is not delivered, investors can file for an extension on their taxes.
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 has a history of not providing investors with inIn 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 has 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 an 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.