Patrick Dibre Allegedly Reneged on the Sale of $40M of Car Dealerships to GPB Capital; Patrick Dibre Allegedly Failed to Deliver Dealerships after GPB Advanced Him $42M
Patrick Dibre allegedly backed out on the sale of $40 million worth of auto dealerships to GPB, according to a Complaint filed in New York Supreme Court under review by investor rights attorney Alan Rosca.
GPB, between December 2013 and April 2015, allegedly advanced Patrick Dibre $42 million for auto dealerships which he purportedly never delivered, the Complaint notes. Dibre also allegedly failed to provide the requisite starting notices to begin the sales process of five dealerships, the Complaint reports.
Dibre purportedly owned auto dealerships in the New York area, reports note.
Both the SEC and FINRA have opened respective investigations into GPB Capital Holdings, LLC, and Massachusetts securities regulators also announced their own investigation into GPB in September of 2018.
The minimum investment in GPB Automotive Portfolio was $100,000, and brokers and advisers can sell private placements, also known as Reg D deals, to rich, accredited investors and institutions, the SEC notes.
Private placement investments are intricate financial instruments and are often quite risky. Private placements must meet strict registration and reporting requirement as set forth by the SEC, and are usually sold under a high fee and commission structure, and one brokerage executive reportedly has indicated that the sales loads for GPB private placements were 12%, including a 10% commission to the broker and his or her broker-dealer, as well as a 2% fee for offering and organization costs.
Investor rights attorney Alan Rosca, of the Rosca Scarlato LLC law firm, is investigating activity related to Patrick Dibre’s alleged reneging on private placement investments. Investors who believe they may have lost money in activity related to Patrick Dibre’s alleged reneging on private placement investments are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.
GPB Capital Holdings Yet to File Financial Statements with the SEC for Two of its Largest Funds
GPB Capital Holdings has reportedly not yet filed financial statements with the SEC for two of its largest funds, the SEC notes.
Both funds, however, crossed industry thresholds for making such information public more than a year ago, the SEC reports.
SEC rules require a private company with more than $10 million in assets and 2,000 individual investors to file financial statements with the SEC, the SEC notes.
GPB has nine private placements on file with the SEC, and the two largest, GPB Automotive Portfolio and GPB Holdings II, both had more than 3,000 investors in May 2017 and had raised hundreds of millions of dollars by that time, SEC filings report. Both funds now have more than double that number of investors, the SEC notes.
GPB Automotive Portfolio has raised approximately $622.1 million from investors over the past five years, and GPB Holdings II has raised $645.8 million since 2015, according to filings from the SEC. The two funds have together paid brokers $100.1 million in commissions at a rate of 7.9%, the SEC states.
GPB has made claims it has raised $1.3 billion and owns more than 100 companies in its various portfolios, according to GPB’s website.
GPB is a New York-based alternative asset management firm which acquires income-producing private companies across a number of industries including automotive, waste management, and middle market lending.
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
GPB Automotive, GPB Holdings II, and GPB Holdings Qualified were restating financial reports for 2015 and 2016, according to reports from August 2018.
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 or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
Securities Lawyer Investigating
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Patrick Dibre’s alleged reneging on private placement investments. 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 Patrick Dibre’s alleged reneging on private placement investments may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
