Securities Fraud Lawyer Blog
GPB Capital Holdings the subject of regulator complaints
FINRA, the securities industry regulator has opened an investigation into GPB Capital Holdings, a New York based investment firm that has raised nearly $2 billion from investors nationwide through a series of private placements. This is in addition to an investigation by the Securities and Exchange Commission. Adding to GPB Capital Holding’s woes, in March, 2019 the firm announced that agents from the FBI made an unannounced trip to its offices as part of their own investigation.
GPB Capital Holding’s private placements were sold by reps from dozens of broker dealers to income starved investors looking to supplement their retirement income. Often omitted in the sales pitch is that these private placements provide huge commissions to the broker, while the investor is left with a high risk, illiquid investment characterized by high fees and conflicts of interest.
Accounting issues and disclosures to investors have been the subject of the regulators’ concerns. The firm had to restate its 2015 and 2016 financial statements, while in November, 2018 GPB’s auditor resigned.
Two months prior, in September the state of Massachusetts opened an investigation into the more than 50 broker dealers who were selling GPB’s investments.
In a most recent update, on October 23, 2019, the U.S. Department of Justice charged GPB Holdings chief compliance officer with obstruction of Justice.
Recently, InvestmentNews, a trade publication published an article detailing claims in a civil suit.
The allegations in the complaint filed by FINRA have not been proven, and until a judgment is rendered or an AWC is entered into by the firm no adverse inference should be drawn as to the guilt of any of the Defendants.
If you have information that might be helpful to our investigation or if you suffered losses investing with GPB Capital Holdings please call The Law Office of David Liebrader at (702) 380-3131 for a free, confidential consultation to discuss your legal rights and options. Our firm takes cases on a straight contingency fee, with no money up front, and no money owed unless there is a recovery.
There is no charge for an initial consultation, so call (702) 380-3131 today to speak with an experienced securities attorney who will fight to recover your losses.
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery. For the past 25 years, we have dedicated our law practice to assisting investors who have been victims of investment fraud via fraudulent and unsuitable investment transactions. During that time we have recovered money for over one thousand individuals, pension plans, trusts and companies. The recoveries we have obtained via judgments, awards and settlements on behalf of our clients exceed $50,000,000.