As first reported by Investment News, GPB Capital Holdings (“GPB” or the “Company”) has announced a further delay in releasing its audited financials promised to investors by the end of 2019. The delay comes after the planned resigning of GPB’s internal audit committee. According to a letter to investors, including over a dozen Levin Law clients, GPB is not meeting its previously promised end-of-year deadline due to the indictment of its former compliance officer. The Company indicated that they have employed a third-party law firm to conduct an independent investigation of his conduct while at the company, and “suspend work on outstanding financial statement audits.” Additionally, GPB announced to investors that their internal audit committee has elected to resign.
Investors and regulators alike have long feared that GPB has been involved in a Ponzi scheme. Investigations against individual brokerage firms that sold GPB holdings to investors have been ongoing and resulted in numerous lawsuits. GPB has promised the release of audited financial statements for over a year. Investors had hoped to see the audited financial statements by September 30, 2019, as promised but were sent a letter indicating the need for an independent investigation as the reason for the delay.
As state and federal regulators continue to investigate GPB and certain of its largest funds, GPB Holdings II and GPB Automotive Portfolio, investors should be seeking the guidance of experienced counsel. If you invested with GPB, please contact our law firm to evaluate whether you have viable claims against the brokerage firm that you GPB. Levin Law is currently prosecuting claims against multiple brokerage firms that recommended GPB Capital Holdings to their customers. If you invested in a GPB fund, you might be able to recover your losses in FINRA arbitration. Levin Law can help. Contact Levin Law today at (305) 402-9050 for a free consultation.