GPB Lawsuit – Peiffer Wolf and Meyer Wilson are currently investigating claims for anyone who has invested in any GPB Capital Holdings Fund. If you or someone you know invested in a GPB Capital Holdings Fund, Contact Us Today by calling 888-390-6491 or by filling out an online Contact Form for a FREE Consultation.
Concerns about possible broker misconduct and investment fraud are serious, and we are committed to fighting on behalf of GPB investors. If you believe you were a victim of investment fraud or broker misconduct, it is imperative to take action. Peiffer Wolf and Meyer Wilson have represented thousands of individual investors, and we remain committed to recovering as much compensation as possible for our clients.
If you invested in any GPB Capital Holdings Fund, please contact Peiffer Wolf and Meyer Wilson today.
Peiffer Wolf and Meyer Wilson have been investigating GPB’s activities over the past year, including following the regulatory proceedings. After allegations that GPB Capital Holdings was being operated like a Ponzi scheme, the securities firms of Peiffer Wolf and Meyer Wilson came together to investigate and file claims against the brokers and brokerage firms who recommended the risky and high-commission GPB Capital Holdings funds to their customers.
Over the course of the past year, multiple lawsuits have been filed and multiple regulatory matters have been initiated, alleging that GPB Capital Holdings has been engaged in wrongdoing. Most concerning, a former GPB Holdings partner alleged that “losses occasioned by GPB were in fact caused by a very complicated and manipulative Ponzi scheme.” The claim continued, alleging that “GPB paid its investors significant returns based upon falsified financial information” and that GPB had to “implement a different investment methodology than the one disclosed to the investors.”
Our investigation into the various GPB private placement funds includes, but is not limited to: GPB Automotive Portfolio LP, GPB Cold Storage LP, GPB Eurobond Finance PLC, GPB Holdings II LP, GPB Holdings III LP, GPB Holdings Qualified LP, GPB Holdings LP, GPB NYC Development LP, GPB Scientific LLC, GPB Waste Management LP, GPB Waste Management Fund LP, and many more.
GPB Capital Investors with May be Able to Recover GPB Losses in FINRA Arbitration
Currently, it appears that investors are in risk of losing some or all of their GPB investments. According to InvestmentNews and the Securities and Exchange Commission (SEC) website, there are at least 60 brokerage firms across the country who sold or disclosed that the might be selling GPB Capital funds.
The Securities Law Firms of Peiffer Wolf and Meyer Wilson are investigating the sales practices and due diligence of Financial Industry Regulatory Authority (“FINRA”) brokers, brokerage firms, and broker-dealers who sold the private placement securities of GPB.
Most, if not all, of the GPB investments are considered private placement, or non-traditional, investments that are not registered with the SEC. These inherently risky investments are often only suitable for sophisticated investors. Brokerage firms and brokers have a duty to their customers to make sure that securities, including private placements, are recommended only to suitable investors. Additionally, brokers and brokerage firms have an obligation to conduct due diligence on private placement securities prior to offering, recommending, or selling them to their customers. However, many brokerage firms and brokers still sell these products because they offer higher commissions.
If your broker or brokerage firm recommended and sold you any GPB Capital fund, it is possible that your broker and/or brokerage firm violated certain duties owed to you. If that is the case, you may be able to sue your broker and/or brokerage firm in FINRA arbitration and recover damages.
In addition to the SEC and FINRA probes into GPB Capital Holdings, InvestmentNews now reports that the FBI is investigating GPB. The SEC, FINRA, and the FBI are all digging into GPB, which claims to have raised $1.8 Billion through securities brokerage firms from private placement fund investors in waste management and car dealerships.
According to an August 2018 news report, GPB notified investors that they should no longer rely on 2015 and 2016 financial statements and reports. The CEO of GPB, David Gentile, disclosed that “certain material weaknesses in internal controls exist.” This disclosure followed an internal accounting review, freezing monthly interest payments.
In September, the Massachusetts Secretary of the Commonwealth announced that it was investigating 63 brokerage firms for selling GPB Capital Holdings private placement investments. This probe came just one month after GPB Capital Holdings announced that it was ceasing its fundraising efforts to deal with accounting and financial reporting issues involving two of its largest funds: GPB Holdings II and GPB Automotive Portfolio. Together, these funds raised over $1 Billion of investor money while paying brokers over $100 Million in commissions. Both funds missed an earlier deadline to file statements with the SEC.
In November, GPB Capital announced that its auditor, Crowe LLP, resigned, citing what the private placement firm’s CEO David Gentile said were “perceived risks” that it felt were outside “internal risk tolerance parameters.”
Peiffer Wolf and Meyer Wilson are currently investigating claims for anyone who has invested in any GPB Capital fund. If you or someone you know invested in any GPB Capital fund, Contact Us Today by calling 888-390-6491 or by filling out an online Contact Form for a FREE Consultation.