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Levin Law Investigating Brokerage Firms That Recommended GPB Capital Holdings to Customers
Levin Law | 3.19.2019
If you invested in a GPB Capital Holdings Fund, please contact Levin Law immediately.
Following allegations that GPB Capital Holdings 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.
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 the Financial Industry Regulatory Authority (“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.
In September, 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.
In November, 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.”
Our investigation into GPB private placement funds includes, but is not limited to, the following funds:
If you invested in any GPB Capital fund through a brokerage firm, contact Levin Law at contact@levinlawpa.com or (305) 402-9050 for a free case 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. Kalos Capital, Inc. Kingsbury Capital, 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.
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