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description GPB Capital— Alleged High Risk Private Placements

GPB Investors Represented by Goldman Scarlato & Penny Preparing to Seek Compensation for Losses

GPB investors represented by the Goldman Scarlato & Penny investor right lawyers are preparing to take action and seek compensation for their losses arising out of their GPB investment.  Investors who believe they lost money in the GPB investment programs are encouraged to contact Goldman Scarlato & Penny attorneys Alan Rosca or Paul Scarlato for a free, no-obligation discussion about their loss recovery options, at 888-998-0530 or via email at rosca@lawgsp.com .

GPB Capital Holdings is a New York based alternative asset management firm that raised over $1.5 billion dollars in capital from thousands of investors across the country, through 10 separate offerings:

  • GPB Automotive Portfolio, LP
  • GPB Cold Storage, LP
  • GPB Eurobond Finance PLC
  • GPB Holdings II, LP
  • GPB Holdings, III, LP
  • GPB Holdings Qualified, LP
  • GPB Holdings, LP
  • GPB NYC Development
  • GPB Scientific, LLC
  • GPB Waste Management, LP formerly: GPB Waste Management Fund, LP

Numerous broker-dealers and their registered representatives across the country sold private placements for GPB Capital. Those broker-dealers and registered representatives allegedly received $167 million in fees and commissions for their sales of GPB products to investors, according to an industry publication.

GPB investors, however, are now looking at striking drops in the value of their investments, and GPB Capital has been investigated by state and federal regulators including the Securities and Exchange Commission (“SEC”), Financial Industry Regulatory Authority (“FINRA”), and the State of Massachusetts.

GPB recently reported estimations that the value of its seven funds have plummeted to $1.1 billion, or only 61% of the initially raised capital. GPB has recently focused its business on buying auto dealerships and waste management businesses with the reported goal of producing high, single digit returns for clients, according to media reports.

GPB has attempted to console investors by making statements that it has returned a total of $272 million to investors through distributions, which act like dividends. That would account for approximately 15% of investors’ capital. However, the Goldman Scarlato & Penny securities lawyers are investigating whether said payments were a return of investor capital and not a return on investment.

GPB started registering the funds with the SEC in 2013, according to its document filings.

GPB Armada Waste Has Dropped 67.4% in Value

GPB‘s Armada Waste Management has particularly struggled, and, according to GPB, the present estimated value of the fund is $53.4 million, after investors purchased $163.4 million of the securities, the media reports note. Overall, Armada Waste Management has declined in value 67.4%, the reports state, which would mean that an investment of $100,000 would plummeted to $32,660.

What GPB Investors Should Do

Investors who are concerned they may have lost money invested in GPB programs may contact a securities attorney to discuss about their legal options. Investor rights attorney Alan Rosca, of the Goldman Scarlato & Penny PC law firm, is working with GPB investors and investigating activity related to GPB Capital’s alleged high-risk private placements sales. Investors who believe they may have lost money in activity related to GPB Capital’s alleged high-risk private placements sales may contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.

GPB Capital Holdings Was the Focus of an SEC and FINRA Inquiry, & Has Been under FBI Investigation Since March of 2019

GPB Capital Holdings fell under the scope of SEC and FINRA investigations regarding the aforementioned private placements, the media reports note.

The SEC’s inquiry reportedly focused on the accuracy of disclosures made by GPB to investors, the performance of various funds and the distribution of capital to investors, according to an industry sources. The heat was then turned up as GPB Capital Holdings reported in March that the FBI made an unannounced visit to the firm’s office in New York, regarding one of their investment programs, the aforementioned reports state.

GPB has made the following statement via a GPB spokesman:

Recently, we have been cooperating with inquiries from various authorities and the visit on February 28, 2019 from the FBI and the New York City Business Integrity Commission, while unscheduled, was a part of that process… We will continue to cooperate with inquiries and are confident that as we move forward our portfolio companies are stable and well-positioned for the future.

Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints mentioned in this article, unless otherwise indicated.

Securities Lawyer Investigating

The Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating GPB Capital’s alleged high-risk private placements sales. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, and has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.

Investors who believe they lost money as a result of GPB Capital’s alleged high-risk private placements sales and related approval of high commissions for reps and brokers may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at rosca@lawgsp.com, or through the contact form on this webpage.

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