Securities regulators continue their investigations into GPB Capital Funds. After GPB failed to file their required annual audited financial statements for GPB Automotive and GPB Holdings, II, on April 30, 2018, the Massachusetts Securities Division opened an investigation into sales practices of firms selling GPB shares. In July 2018, Massachusetts Secretary of the Commonwealth, William Francis Galvin, announced a sweep of 63 broker-dealers that sold shares of GPB. The ongoing investigation “seeks to gather information regarding the sales, supervisory, due diligence and approval process of the broker-dealer firms related to the sale of GPB products.”
As Levin Law has previously reported, GPB Capital is also under investigation by the U.S. Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), and the Federal Bureau of Investigation (FBI). Brokerage firms that recommended GPB Capital Holdings continue to be scrutinized. If you invested in a GPB Capitals Holdings such as GPB Automotive or GPB Holdings, II., you need to contact an experienced attorney immediately. Investors may be able to recover losses in FINRA arbitration. Levin Law has recovered millions on behalf of clients who were recommended risky, high-commission investments.
Investors need to act fast to recover losses. Securities regulators continue to crack down against GPB Capital. The Department of Justice recently unsealed a superseding indictment against GPB Capital Holdings, Managing Director and Chief Compliance Officer Michael S. Cohn. The federal charges included obstruction of justice, obtaining information from a government computer, and unauthorized disclosure of confidential information.