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GPB Capital Holdings Continued Fraud Investigation

Levin Law | 4.10.2020

Levin Law, P.A. Continues to Investigate Brokerage Firms That Recommended GPB Capital Holdings to Their Customers

If you invested in a GPB Capital Holdings Fund, please contact Levin Law immediately.

Following allegations that GPB Capital Holdings (“GPB Capital”) was being operated like a Ponzi scheme, Levin Law, P.A. (“Levin Law”) is investigating possible claims against brokerage firms who recommended risky and high-commission GPB Capital Holdings funds to their customers.  Over the course of the last year, Levin Law has filed many Financial Industry Regulatory Authority (“FINRA) arbitration claims collectively seeking tens of millions of dollars against brokerage firms that recommended and sold GPB Capital funds to their customers and has already resolved claims on behalf of a number of clients.  In addition, Levin Law also filed a class action directly against GPB Capital and related entities and individuals in New York seeking hundreds of millions in damages.

There have been multiple publicly filed lawsuits and regulatory matters alleging that GPB Capital Holdings has been engaged in wrongdoing.  In one instance, former GPB Holdings operating partner, Patrick Dibre alleged that “losses occasioned by GPB were in fact caused by a very complicated and manipulative Ponzi scheme.”  The claim further alleges that “GPB paid its investors significant returns based upon falsified financial information.”  The complaint also alleges that GPB had to “implement a different investment methodology than the one disclosed to the investors.”

GPB Capital Investors May be Able to Recover Their GPB Capital Losses in a FINRA Arbitration 

It appears that investors may lose some or all of their GPB Capital Holdings investment.  According to public filings on the Securities and Exchange Commission (“SEC”) website, there were many securities brokerage firms across the country who sold, or who disclosed that they might be selling GPB Capital-issued funds.  Brokerage firms have a duty to their customers to make sure that securities, including private placements, are recommended only to investors for whom they are suitable.  In addition, securities broker-dealers have an obligation to conduct due diligence on private placement securities prior to offering, recommending, or selling them to their customers.  If your brokerage firm recommended and sold any GPB Capital fund to you, it is possible that your brokerage firm violated certain duties owed to you.  If that is the case, you may be able to sue your brokerage firm in a FINRA arbitration and recover damages.

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