A National Securities Arbitration & Investment Fraud Law Firm
GPB Capital investors are suffering catastrophic losses on their investments. GPB has reduced the valuations of their portfolio and investor complaints against selling brokers continue to pile up.
GPB Capital includes the following funds:
The future is uncertain for GPB Capital Holdings and its investors. As state and federal agencies investigate the troubled alternative asset management company, investors wait, unable to sell, wondering if the money they invested will evaporate.
It wasn’t supposed to be this way. Clients were told by their brokers that GPB had solid assets and that investing in the company was low-risk. Sure a private placement in GPB was illiquid, but it would provide a healthy income stream for years to come, and one day the company could go public and make them a healthy profit, they said.
GPB Capital Holdings is being sued by one of its business partners, David Rosenberg, for allegations of financial misconduct. According to the lawsuit, Rosenberg is the chief executive of Prime Automotive Group. In 2017, he sold a majority stake in the company to GPB for $235 million. Rosenberg’s lawsuit accuses GPB of running like a Ponzi scheme by using investor’s money to pay other investors. He also alleges that GPB tried to force him out after he complained about their behavior to the SEC. Continue reading ›
GPB Capital raised over 1.5 billion dollars primarily from mom and pop investors over the last four years. How was GPB they able to raise this money? By paying small and regional brokerage firms over nine (9) percent of the money raised back to the selling broker-dealers.
Last week, GPB announced that many of their funds are down 40% or more in value. In hopes of offering their clients some solace, GPB highlighted that it had already made distributions to investors of about 15% of the investors’ capital. However, many investors were shocked to learn that these distributions were not from earnings or profits but an actual return of the money they had previously invested. In other words, GPB wants to be applauded for returning to investors at least some of their money. Continue reading ›
The news keeps getting worse for GPB Capital. The troubled company reported Friday that the value of its two biggest investment funds, GPB Holdings II and GPB Automotive Portfolio, have declined by 25% and 39%, respectively.
The other five GPB funds also have significant declines in value, according to the company. Continue reading ›
Back in August, we told you about Bradley Joseph Tennison (CRD#: 156988), who was barred by FINRA after his discharge from Genos Wealth Management of Mesa, AZ. Tennison was discharged for “selling away,” the practice of offering and selling securities that are not offered by the broker’s firm of employment. The firm was unable to locate any records of these investments, and Tennison was not completely cooperative.
A new customer dispute was filed on 10/19/2018, alleging that Tennison recommended to the client that he sell his investments in order to invest in a private placement trust that Tennison managed. Tennison also did not disclose to the customer that he was strictly prohibited from recommending these kinds of investments without review and the express approval from Genos. This allegation led to his discharge from Genos in April of 2018. This customer requests damages of $1,200,000. The case is currently pending. Continue reading ›
Registered investment advisor Direct Lending Investments, LLC (CRD# 282476) has been sued by the SEC with multiple fraud charges relating to $11 million in management and performance fee overcharges on private placements. The company also falsified loan repayment information and inflated their annual returns for many years. The suit was filed on March 22 in Los Angeles. Continue reading ›
Silver Law Group has filed the first arbitration claim against SagePoint Financial related to GPB Capital investments. The claim, filed on behalf of a client who invested in GPB’s automotive fund, is for $400,000.
GPB is under investigation by federal and state agencies, and is accused of being a Ponzi scheme. In December 2018 they stopped paying investors, the value of their private placement investments has gone down, and the future of the company is uncertain. Continue reading ›
Scott Silver, the managing partner of Silver Law Group, recently spoke to AutoNews.com for an article about GPB Capital’s ongoing legal troubles. GPB Capital investments were sold by SagePoint Financial, National Securities, and other brokerage firms.
According to the article, GPB Capital Holdings is the majority owner of Prime Automotive Group, which is the 11th-largest dealership group in the country. GPB is the subject of federal and state investigations, and investors are concerned. There is concern that it could collapse and leave Prime without its majority investor and cause people who’ve invested in GPB to lose their money. Continue reading ›
Broker William Matthew Crafa and wealth management firm Royal Alliance Associates, Inc are the subject of a FINRA claim on behalf of investors regarding the solicitation and recommendation to purchase GPB Capital Holdings private placement securities.
GPB Capital Holdings, a New York-based “alternative asset investment firm” that invests in car dealerships and trash hauling companies, has been the subject of a tremendous amount of bad news lately. After raising $1.8 billion for its private placement funds over 10 years, in 2018 GPB announced it would stop raising new money to focus on fixing accounting and financial statements for its two largest funds, GPB Automotive Portfolio and GPB Holdings II. Continue reading ›
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