HOUSTON, March 27, 2019 (GLOBE NEWSWIRE) -- Lawyers with Shepherd, Smith, Edwards & Kantas, LLP (SSEK Law Firm) continue to investigate claims and assist investors in pursuing their losses stemming from investments connected to GPB Capital Holdings, LLC. Over the past year, GPB Capital has received increased attention and heightened scrutiny from various state and federal regulators, along with the FBI, over allegations of questionable accounting and sales practices as well as inaccurate disclosures to investors. GPB Capital is the focus and/or target of several current, on-going investigations by the U.S. Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the New Jersey Bureau of Securities, the Massachusetts Securities Division, and the NY City Council’s Business Integrity Commission. Both ProPublica and InvestmentNews continue to break stories about the expanding inquiries by regulators and the FBI into GPB Capital’s funds and associated businesses, such as:
- GPB Automotive Portfolio
- GPB Holdings I
- GPB Holdings II
- GPB Waste Management Fund
- GPB Cold Storage
- GPB NYC Development
GPB Capital has suspended all redemptions of its funds and its auditors resigned in November 2018.
GPB Capital was formed in 2013 and, according to InvestmentNews, has “raised $1.8 billion from accredited investors through private placement funds, which invest in auto dealerships and the waste management industry.” GPB-branded private placements were sold to investors by financial advisors associated with numerous independent broker-dealers, and questions have arisen surrounding the amount of due diligence, or lack thereof, performed by these firms when they agreed to sell these investments to their clients. Brokerage firms, and their registered representatives, have an obligation to exercise due diligence when making investment recommendations to clients. William Galvin, head of the Massachusetts Securities Division, announced in September 2018 that it is currently investigating 63 broker-dealers that sold GPB private placements to Massachusetts residents. Other states have open investigations as well.
If you invested in any GPB-related funds and suffered losses, please contact the law firm of Shepherd, Smith, Edwards & Kantas, LLP today for a free, confidential evaluation of your investments and legal options. We have a team of attorneys, consultants, and staff with over 100 years of combined experience in the securities industry and in securities law that are ready to assist you in recovering your investment losses today.