Robert Wayne Pearce, P.A. is investigating and representing investors against brokerage firms and financial advisors who offered and sold securities issued by affiliates of GPB Capital. GPB Capital Holdings, based out of New York, organized and manages the following nine private placements: GPB Automotive Portfolio, LP; GPB Cold Storage LP; GPB Holdings, LP; GPB Holdings II, LP; GPB Holdings III, LP; GPB Holdings Qualified, LP; GPB NYC Development, LP; and GPB Waste Management Fund, LP.
GPB Capital’s two most significant investment funds are GPB Holdings II and GPB Automotive Portfolio. These two funds have collectively paid brokers $100 million in commissions at a rate of 7.9%! Over the last year, it has been the subject of a series of federal, state, and self-regulatory agency investigations and other bad news. For example, in September 2018, Massachusetts Secretary of the Commonwealth, William Galvin, announced an investigation into 63 broker-dealer firms that sold private placements sponsored by GPB Capital Holdings. More recently, in July 2019, David Rosenberg, a former business partner and chief executive of Prime Automotive Group, filed a lawsuit against GPB Capital Holdings, alleging severe financial misconduct. According to a Boston Globe article, Rosenberg allegedly accused GPB Capital Holdings of running a Ponzi-like scheme, in which it used investor money to prop up the performance of the auto dealerships it owns, as well as to finance payments to other investors.
Since its start in 2013, GPB Capital Holdings has raised $1.8 billion from roughly 4,000 investors through private placements sold by brokerage firms across the United States. Investors are filing FINRA arbitration claims against their brokerage firms for investments in GPB Capital Holdings on the advice of their brokers. Investors were allegedly not adequately warned about the high-risk nature of the investments and have suffered serious financial losses. Investors may have claims against their brokerage firm due to misrepresentation, unsuitability, breach of fiduciary duty, and state and federal securities laws. Also, before a financial advisor recommends a security to his or her customers, she or he must conduct due diligence and investigate the facts surrounding the security to confirm that it is suitable for the customer. A brokerage firm may be held liable for its broker’s failure to perform this proper due diligence.
Financial advisors across the country from more than 80 brokerage firms are alleged to have misrepresented and/or recommended unsuitable investments in GPB Capital Holdings-sponsored private placements.
Have you suffered losses in your investment account due to your stockbroker’s unsuitable GPB Capital recommendation? You may be able to recoup your GPB Capital losses. Mr. Pearce has over 40 years of experience with private placement investment disputes. Call 1-800-SEC-ATTY (1-800-732-2889) for a free consultation or email Mr. Pearce now at firstname.lastname@example.org and get your questions answered regarding your GPB Capital private placement investment. Mr. Pearce is accepting clients with valid claims against stockbrokers who made unsuitable GPB Capital recommendations and caused investors losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.