Sonn Law Group attorneys represent individual and institutional investors who have lost money as a result of unsuitable investment advice.
AVENTURA, Fla. (PRWEB) September 16, 2019
Sonn Law Group attorneys are investigating GPB Capital Holdings, LLC (“GPB Capital”) which was recently accused by former CEO of Prime Automotive Group, David Rosenberg, of running a Ponzi scheme (See Case No. 1982CV00925, Mass. Norfolk Cty Superior Ct).
Interests in GPB Capital were sold by numerous brokers and brokerage firms including (but not limited to) Royal Alliance Associates Inc., SagePoint Financial Inc., FSC Securities Corp., Woodbury Financial Services Inc., Newbridge Securities, Ladenburg Thalman, Kalos Capital, Inc., Concorde Investment Services (DBA Peregrine Private Capital Corporation), National Securities Corporation, and Hightower Securities.
If you invested in any of the GPB Capital funds through a registered brokerage firm, stock broker or financial advisor, contact investigating attorney Jeffrey Sonn via phone (866-266-1766) or online (SonnLaw.com/Contact-Us/) to discuss your case.
GPB Capital Holdings (CRD#: 169825/ SEC#: 801-79413) is advertised as an alternative asset management company based in New York, New York. As described on their website, GPB Capital Holdings is focused on ‘acquiring income-producing private companies’.
In effect, this means that GPB Capital Holdings is a seller of private placements. Often these sales are made to investors through brokerage firms. Under Regulation D, private placements are not subject to many standard securities disclosure requirements. As a result, these types of investments tend to be risky and they typically have high fees. They are not suitable for most investors.
On June 20, 2019, GPB Capital reported losses of 25.4% and 39% in its two largest funds, GPB Holdings II and GPB Automotive Portfolio, respectively. GPB Capital Holdings is also being investigated by federal and state agencies on suspicion that it is a Ponzi scheme after allegations by one of the firm’s former business partners. The investigation comes after the firm first failed to report financial information to the SEC regarding their largest funds, then later in the same year when it announced it would no longer pay distributions to investors. Affected GPB Capital Funds include:
1. GPB Automotive Portfolio, LP
2. GPB Holdings, LP
3. GPB Holdings II, LP
4. GPB Holdings III, LP
5. GPB Holdings Qualified, LP
6. GPB Cold Storage, LP
7. GPB NYC Development, LP
8. GPB Eurobond Finance, PLC
9. GPB Waste Management, LP
10. GPB Scientific, LLC
On September 10, 2019 GPB investors received a letter stating that GPB would not be able to follow through on their promise of providing audited financial statements by September 30, 2019. GPB now claims that they will provide said financial statements by the end of 2019, citing “new challenges” as the reason for the delay.
The lawyers at Sonn Law Group represent individual and institutional investors who have lost money as a result of unsuitable investment advice, negligent advice, investment fraud or stockbroker misconduct. Their attorneys have helped to recover more than $250 million in assets lost to investment fraud, securities fraud, Ponzi schemes, and stockbroker misconduct.
Contact investigating attorney Jeffrey Sonn via phone (866-266-1766) or online (SonnLaw.com/Contact-Us/) to discuss this case.