According to a recent article published by InvestmentNews, GPB Capital Holdings is facing new accusations of running a “Ponzi-like scheme” by their former business partner. On July 19, 2019, David Rosenberg filed suit against GPB in Massachusetts’ Norfolk Superior Court asserting that the investment firm was involved in “serious financial misconduct.” The lawsuit arose from the 2017 sale of a majority stake in Rosenberg’s Prime Automotive Group.
According to Rosenberg, he was pushed out after reporting evidence of financial misconduct such as self-dealing and inflated revenues. Rosenberg alleged that GPB “used money from investors to prop up the performance of auto dealerships it owns, as well as to finance payments to other investors.” He further alleged that GPB was involved in “extensive efforts to cover up the misconduct.” Unknowing investors were made to believe that their investments were safe and that losses were within the ordinary course of business.
GPB Capital has faced numerous allegations of financial misconduct and continues to be investigated by the SEC, FINRA, the FBI, a division of the State of New York, and the Massachusetts Secretary of Commonwealth.
Levin Law, P.A. has brought numerous FINRA arbitration claims on behalf of GPB investors against the brokerage firms that approved, recommended, and sold GPB funds to their customers. If you invested in a GPB Capital fund and experienced losses, you might be entitled to pursue claims against the securities brokerage firm who recommended and sold the GPB fund to you. You need an experienced lawyer who has directly handled multiple FINRA arbitration claims involving GPB Capital Holdings and the brokerage firms that recommended these risky, high-commission investments to investors. Contact Levin Law today for a free consultation.