On December 18, 2018, media reports revealed that Massachusetts’ securities regulators are investigating GPB Capital Holdings, which sold approximately $1.8 million of its private funds. The funds were sold through independent brokerage firms that reportedly received 10% commissions for pushing these funds on investors. These investments, however, were highly speculative and risky private placements that should only have been presented to highly aggressive investors. Accordingly, Zamansky LLC opened an investigation on behalf of investors in GPB Capital Holdings Private Funds.
GPB Capital Holding’s funds include:
- GPB Automotive Fund
- GPB Automotive Income
- GPB Holdings II and III
- GPB Waste Management
- GPB Cold Storage
- GPB NY Development
Zamansky is investigating whether fraud and a breach of duty occurred by GPB officers and managers. FINRA articulates that brokers selling this type of investment must conduct thorough due diligence and justify the investment as suitable for a customer. Considerations include the investor’s age,risk tolerance, net worth, financial needs, and investment experience. As such, selling these investments to less informed, cautious investors may give rise to legal action against GPB Capital Holdings.
It is estimated that over 60 brokerage firms sold these private funds including: Royal Alliance Associates Inc., Sagepoint Financial Inc., FSC Securities Corp., Woodbury Financial Services Inc., Aegis Capital Corp., Newbridge Securities Corporation, Ausdal Financial Partners, Concorde Investment Services, Geneos Wealth Management, Hightower Securities, International Assets Advisory, Money Concepts Capital Corp., National Securities Corporation, and others.
Furthermore, in August 2018, it was reported that GPB Automotive, GPB Holdings II, and GPB Holdings Qualified were restating financial reports for 2015 and 2016. Also, GPB is in a lawsuit with a former business partner over the failure to invest $42 million in auto dealerships.
Public reports also reveal that GPB is under investigation by the Securities & Exchange Commission and other regulators and has been accused in a lawsuit by a former business partner of running a “Ponzi” scheme. The FBI is believed to have visited GPB’s Capital Holdings’ office in March of this year.
How Zamansky LLC Can Help GPB Investors
If you have a known or unrealized loss in any GPB fund, or you are not receiving income that was promised to you, please contact our firm for an evaluation of your investment and your rights. You can contact Jake Zamansky by telephone at (212) 742-1414 or by email at email@example.com.