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Zamansky LLC Investigates Center Street Securities Inc. and Moloney Securities Co. Over GPB Automotive and GPB Holdings Disclosure Failures

January 13, 2023 Active Cases & Investigations

The law firm is investing in Nashville-based Center Street Securities Inc. and Missouri-based Moloney Securities Co. Inc. for disclosure failures concerning GPB Automotive and GPB Holdings due to potential investment fraud.   

On December 29, 2022, the Financial Industry Regulatory Authority (FINRA) found, in a regulatory proceeding, that between May 4, 2018, and June 29, 2018, Center Street negligently failed to tell 20 investors, and Moloney Securities negligently failed to tell 37 investors, that GPB issuers failed to timely make required filings with the Securities and Exchange Commission, including filing audited financial statements.

In 2013, GPB Automotive Portfolio, LP (GP Automotive) was formed to acquire and operate automotive dealerships.  In 2015 GPB Holdings II, LP (GP Holdings) was formed primarily to acquire and operate companies in the automotive, retail, and managed IT sectors.  Both are limited partnerships that had New York-based GPB Capital as the general partner and were sold pursuant to Regulation D of the Securities Act of 1933.  Brokerage firms Center Street Securities and Moloney Securities Co. were required to conduct due diligence before selling GPB offerings to investors.

According to FINRA, Center Street Securities and Moloney Securities Co. sold GP Automotive and GP Holdings to investors without advising them that neither company had filed updated financial statements.  FINRA found that both brokerage firms had received a letter notifying them that audited financial statements were delayed by a forensic audit after allegations were made in a lawsuit by a former partner that certain financial statements were falsified.  FINRA found that the failure to notify investors of the audit was material.  

The law firm is investigating claims by investors in GPB Automotive and GPB Holdings for investment fraud, unsuitability, negligence and misrepresentation against brokerage firms that sold these investments.  In February 2021, the SEC filed a complaint against GPB Capital and other defendants, alleging, among other things, that the defendants engaged in securities fraud in violation of Section 10(b) of the Securities Exchange Act of 1934 and the United States Department of Justice also brought criminal charges against GPB Capital’s founder and CEO and two other executives, charging, among other things, securities fraud, mail fraud and wire fraud.

Speak with an Investment Fraud Attorney if You’ve Suffered Losses

If you have investment fraud losses from investing in GPB Automotive or GPB Holdings, please call investment fraud attorney Jake Zamansky at (212) 742-1414 or email jake@zamansky.com for a free evaluation of your potential legal rights.

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