GPB Capital Has Been Accused by the SEC of Defrauding Investors.
Investors are filing lawsuits against brokerage firms who recommended investments in GPB Capital
Did your broker / advisor recommend investing in GPB Capital? Did you suffer losses in your investment accounts as a result? If so, click here or call 844-689-5754 to contact the Sonn Law Group immediately to discuss your situation. Our Firm can help you file a lawsuit to attempt to recover your GPB Capital Holdings losses.
Browse all news and updates related to GPB Capital below.
GBP Capital Lawsuit — Recent News, Updates & Broker Investigations:
- GPB Capital Holdings Investment Losses with Geneos Wealth Management (4/19/2021)
- Daniel Poland, Broker with McNally Financial Services, Accused of Recommending GPB Capital Private Placements (4/19/2021)
- Michael Cohn, Former CCO of GPB Capital, Sentenced to 9-Months House Arrest (4/12/2021)
- Federal Government Seeking 6-Month Prison Sentence for Michael Cohn, Former CCO of GPB Capital (3/22/2021)
- GPB Capital Holdings Fraud Trial Put on Hold (3/16/2021)
- Triad Advisors Named in Customer Complaints Alleging Sales of GPB Capital (2/28/2021)
- Claimant Awarded Damages in FINRA Arbitration for Losses Sustained Investing in GPB Capital (2/22/2021)
- SEC Seeks Appointment of Independent Monitor for GPB Capital Holdings (2/16/2021)
- SEC Says GPB Capital Holdings Ponzi Scheme Defrauded 17,000 Investors (2/8/2021)
- Michael Cohn, Former Chief Compliance Officer for GPB Capital Holdings, Pleads Guilty to Theft of Government Property (9/11/2020)
- GPB Capital Holdings Reports Sharp Decline in Assets Under Management (7/28/2020)
- GPB Capital and Affiliated Companies Received Between $3M and $7M in PPP Loans (7/14/2020)
- GPB Capital Named in Class Action Filed in Texas Federal Court (7/3/2020)
- David Atlee, Formerly of Triad Advisors, Accused of Unsuitable Recommendations in GPB Capital Holdings (6/22/2020)
- Marc Linsky, Broker for ProEquities, Named in Customer Dispute Involving GPB Capital Investments (6/3/2020)
GPB Capital (CRD#: 169825/ SEC#: 801–79413) is a private investment entity. The company’s core model centers around “acquiring income-producing assets” — most notably, auto dealerships and trash hauling companies.
In the fall of 2018, GPB announced that it was halting sales to new investors and suspending redemptions to address accounting issues. The following funds were affected:
- GPB Automotive Portfolio, LP
- GPB Holdings, LP
- GPB Holdings II, LP
- GPB Holdings III, LP
- GPB Holdings Qualified, LP
- GPB Cold Storage, LP
- GPB NYC Development, LP
- GPB Eurobond Finance, PLC
- GPB Waste Management, LP
- GPB Scientific, LLC
This company is now being investigated by regulators and law enforcement as a potential Ponzi scheme. If you are an investor who lost money in GPB Capital, it is essential that you consult with an experienced Ponzi scheme lawyer right away. You may be eligible to recover financial compensation for your damages.
Here are the Top Three Things You Need to Know About the GPB Capital Lawsuit Investigation
GPB CAPITAL LAWSUIT NEWS
1. GPB and three executives were charged by the SEC with defrauding investors
The SEC alleged that the distribution payments actually came from money put in by new investors. Jeffrey Lash, former managing partner at GPB Capital, also allegedly assisted Gentile in manipulating financial statements of certain limited partnership funds managed by GPB Capital in order to give the appearance that GPB Capital’s income was significant enough to cover distribution payments, when in fact it was not.
The complaint further alleged that GPB Capital and Ascendent Capital made misrepresentations to investors regarding fees and the funds’ true financial condition. GPB Capital also failed to deliver audited financial statements and register two of its funds with the SEC.
The SEC also alleged that GPB Capital violated the whistleblower provisions of the securities laws by, “including language in termination and separation agreements that impeded individuals from coming forward to the SEC, and by retaliating against a known whistleblower.”
“As alleged in our complaint, the defendants told investors that they would be paid distributions from profits of the portfolio companies when, in reality, many of the payments were being made from the investors’ own funds,” stated Richard Best, Director of the SEC’s New York Regional Office. “This action shows our continued pursuit of those who deceive investors and conceal their misconduct to reap profits for themselves.”
Jane Norberg, Chief of the SEC’s Office of the Whistleblower, added, “Whistleblower protections are a cornerstone of the SEC’s whistleblower program. The charges filed today reinforce the Commission’s commitment to protecting whistleblowers from retaliation and attempts to stifle the free flow of information to the Commission about possible securities law violations.”
GPB CAPITAL LAWSUIT NEWS
2. GPB Capital is Accused of Being a Ponzi Scheme
In a legal complaint filed in the New York Supreme Court, a former business partner of GPB Capital alleges that the investment entity is little more than a “complicated and manipulative” Ponzi scheme.
Among other things, this former associate contends that GPB was only able to pay investors significant returns based on “falsified financial information” and that the investment company had to “implement a different investment methodology” to stay afloat. This is extremely alarming.
If proven true, investors are facing the possibility of serious losses. Since 2013, GPB Capital has reportedly raised nearly $2 billion from investors.
GPB CAPITAL LAWSUIT NEWS
3. Financial Advisors and Brokerage Firms May Be Liable for Losses in GPB Capital
Many financial advisors and brokerage firms encouraged customers to invest in GBP Capital. As was mentioned, Massachusetts regulators are investigating dozens of brokerage firms that offered this private placement investment.
Among many others, broker-dealers that recommended and sold risky GPB Capital fund to investors include, but are not limited to:
- Royal Alliance Associates Inc.
- SagePoint Financial Inc.
- FSC Securities Corp.
- Woodbury Financial Services Inc.
- Newbridge Securities
- Ladenburg Thalman
- Hightower Securities
- Kalos Capital, Inc.
- Concorde Investment Services (DBA Peregrine Private Capital Corporation)
- National Securities Corporation
Contact a Securities Fraud Attorney Today
While selling GPB Capital funds allowed financial advisors and broker-dealers to bring in high commissions and fees, doing so put investors at considerable risk.
Investors who relied on their financial advisor or brokerage firm to perform adequate due diligence may be eligible to recover compensation for losses sustained in GPB Capital.
Jeffrey R. Sonn is a securities fraud attorney. He has more than 30 years of experience fighting for the rights of investors nationwide. If you or your family member sustained significant losses in GPB Capital, you need to speak to a lawyer immediately. For a free initial consultation, please do not hesitate to contact the Sonn Law Group today.