GPB Capital Holdings Continued Fraud Investigation

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.

If you or someone you know invested in any GPB Capital fund, contact Levin Law for a free case evaluation.  Levin Law accepts cases on a contingency-fee basis.

GPB Private Placement Funds Under Review

InvestmentNews reports that the FBI is investigating GPB Capital Holdings.   According to the article, GPB stated that the FBI stopped by unannounced to its New York offices.  That visit occurred only months after both the US Securities and Exchange Commission (“SEC”) and FINRA launched probes into the firm, which claims to have raised $1.8B through securities brokerage firms from accredited, high net worth investors via private placement funds invested in waste management and car dealerships.

Another news outlet reported that GPB Capital Holdings sold private placements that are risky, illiquid alternative investments.

Massachusetts Secretary of the Commonwealth William Galvin announced that it was investigating 63 stock brokerage firms for selling GPB Capital Holdings-issued private placements.   That probe came just a 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, the GPB Holdings II and the GPB Automotive Portfolio, which together reportedly raised over $1 billion of investor money while paying brokers over $100M in commissions. Both funds missed an earlier deadline to file statements with the SEC.

GPB Capital announced that its auditor, Crowe LLP, had stepped down from that role over what the private placement firm’s CEO David Gentile said were “perceived risks” that it felt were outside “internal risk tolerance parameters.”

If you invested in any GPB Capital Fund through any brokerage firm, contact Levin Law for a free evaluation.

Brokerage Firms Who May Have Sold GPB Capital Funds to Their Customers

According to the public filings on the SEC website, the following brokerage firms were listed as firms who were authorized to sell GPB Capital funds to their customers:

Accelerated Capital Group
Advisory Group Equity Services, Ltd
Aegis Capital Corp
Aeon Capital, Inc.
American Capital Partners, LLC
Arete Wealth Management, LLC
Arkadios Capital
Ascendant Alternative Strategies, LLC
Ausdal Financial Partners, Inc.
Avere Financial Group, LLC
Axiom Capital Management, Inc.
BCG Securities, Inc.
Benjamin & Jerold Brokerage I, LLC
Cabot Lodge Securities, LLC
Calton & Associates, Inc.
Cape Securities, Inc.
Capital Financial Services, Inc.
Capital Investment Group, Inc.
Cascade Financial Management, Inc.
Center Street Securities, Inc.
Coastal Equities, Inc.
Colorado Financial Service Corp.
Concorde Investment Services, LLC
Crown Capital Securities, L.P.
Crystal Bay Securities, Inc.
D.H. Hill Securities, LLLP
David A. Noyes & Company
Dawson James Securities, Inc.
Dempsey Lord Smith, LLC
Detalus Securities, LLC
DFPG Investments, Inc.
Dinosaur Financial Group, LLC
Emerson Equity LLC
Financial West Group
FSC Securities Corp.
Geneos Wealth Management, Inc.
Great Point Capital, LLC
Hightower Securities, LLC
IBN Financial Services, Inc.
Innovation Partners LLC
International Assets Advisory, LLC
Investment Architects, Inc.
Landolt Securities, Inc.
Lewis Financial Group, L.C.
Lion Street Financial, LLC
Lowell & Company, Inc.
Madison Avenue Securities, Inc.
McDonald Partners LLC
McNally Financial Services Corp.
Moloney Securities Co., Inc.
Money Concepts Capital Corp.
MSC – BD LLC
National Securities Corp.
Newbridge Securities Corp.
Orchard Securities, LLC
Partier Securities, LLC
Private Client Services, LLC
Purshe Kaplan Sterling Investments
Royal Alliance Associates, Inc.
Sagepoint Financial, Inc.
Sandlapper Securities, LLC
SCF Securities, Inc.
Sentinus Securities, LLC
Silber Bennett Financial, Inc.
Stephen A. Kohn & Associates, Ltd.
Triad Advisors, LLC
Uhlmann Price Securities, LLC
United Planners’ Financial Services of America, LP
Vanderbilt Securities, LLC
Vestech Securities, Inc.
Western International Securities, Inc.
Westpark Capital, Inc.
Whitehall-Parker Securities, Inc.
Wilmington Capital Securities, LLC
Windsor Steet Capital, LP
Woodbury Financial Services, Inc.

About Levin Law

Levin Law is a premier national securities and class action law firm with significant experience.  Brian Levin, Levin Law’s founding attorney, has helped recover around $100,000,000 through securities arbitration and litigation for individual and institutional investors throughout the country and the rest of the world. Levin Law represents retirees, individual investors, high-net-worth investors, ultra-high-net-worth investors, institutions, family offices, trusts, publicly held companies, and others.