GPB Capital Holdings, LLC operates as an investment advisory firm. The Company manages all of its client assets in a discretionary manner, meaning that transaction choices are made by an investment advisor without the need for the approval of the investor. GPB Capital Holdings, LLC serves investors nationwide.
The SEC, FINRA, and FBI are investigating the firm’s shady practices that put the money of thousands of investors at risk. The company and its executives face huge charges including securities fraud and conspiracy. This case is a good example of how white-collar crime can hurt so many people.
GPB Capital specialized in buying income-producing private businesses that were primarily in the automotive retail and waste management sectors. It reportedly raised $1.8 billion from investors. However, the saga took a big turn this week when the SEC forced GPB to liquidate and appoint a receiver to oversee the company’s assets and records.
Federal prosecutors claim that David Gentile, the founder of GPB Capital, ran a Ponzi-like scheme that swindled more than $1 billion from investors. In a plea agreement, Gentile and a former business partner have agreed to pay restitution totaling more than $4 million. The restitution will help GPB repay investors for losses caused by the fraudulent scheme.
In the spring of 2018, GPB Capital Holdings halted payments and sales to investors after failing to file audited financial statements for two of its largest private investments with the SEC. The failure to file the statements sparked several investigations of GPB’s business practices, including a criminal investigation by the SEC and FBI.
In addition to a criminal investigation, the SEC also initiated a FINRA probe of brokerage firms that sold GPB Capital’s private placement securities. According to reports, 15 broker-dealers were fined by FINRA for violations related to their sales of the company’s private placements in 2018. The brokers-dealers allegedly failed to inform customers that GPB had missed the deadline for filing the financial information.
The Securities Law Firm of Peiffer Wolf Carr & Kane is continuing to investigate potential securities fraud claims involving broker dealers who recommended high-risk GPB Capital investments to investors. GPB Capital private placements are non-traditional investments that are typically only suitable for sophisticated investors. Investors may be eligible to recover compensation for their losses through a FINRA arbitration claim.
GPB Capital Holdings allegedly lost significant value in its private placements, including the GPB Automotive Portfolio and the GPB Real Estate Portfolio. These securities are typically sold through a network of Financial Industry Regulatory Authority (FINRA) broker-dealers to individual investors. Investors who suffered significant losses in these offerings are encouraged to contact a FINRA arbitration lawyer for a free consultation. There are several different avenues for recovering compensation, including class action lawsuits and individual arbitration. The best path for each investor depends on their unique situation. Our attorneys are experienced in both types of recoveries and can guide you through the process. Click here to learn more about your options.