GPB Capital Holdings Under Investigation by SEC, FBI, FINRA and State of Massachusetts | Goodman & Nekvasil P.A. May Recover Investor Losses
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InvestmentNews reports that Massachusetts Secretary of the Commonwealth William Galvin, announced a sweeping investigation into 63 broker-dealer firms selling private placements from GPB Capital Holdings. InvestmentNews further reports that two GPB private placements, GPB Automotive Portfolio and GPB Holdings II, are required because of their size to file statements with the Securities and Exchange Commission. However, both missed the deadlines to file, according to Mr. Galvin’s office.
The SEC and FINRA have commenced their own investigations into GPB Capital Holdings, LLC.
According to WealthManagement.com, GPB Capital Holdings sells illiquid, high-risk, high-commission alternative investments through various independent broker/dealers. According to WealthManagement.com, the investigation was prompted by a variety of factors, including an anonymous tip from an independent firm, GPB Capital Holdings missing important Securities and Exchange Commission filing deadlines for a pair of private placements and the fact that GPB is currently embroiled in a lawsuit with a former business partner over a deal involving the sale of an auto dealership, to the tune of $40 million.
InvestmentNews also reports that GPB Capital Holdings’ GPB Automotive Portfolio has raised $622.1 million over the past five years, and GPB Holdings II has raised $645.8 million since 2015, according to company SEC filings in May. Together, according to InvestmentNews, the two funds have paid brokers $100.1 million in commissions at a rate of 7.9% and as many as 60 broker-dealers sold the funds.
The broker-dealers who appear in the SEC filings for GPB offerings are listed below. None of these broker-dealers has been found to have engaged in any wrongdoing:
- Accelerated Capital Group
- Advisory Group Equity Services, Ltd
- Aegis Capital Corp
- Aeon Capital, Inc.
- American Capital Partners, LLC
- Arete Wealth Management, LLC
- Arkadios Capital
- Ascendant Alternative Strategies, LLC
- Ausdal Financial Partners, Inc.
- Avere Financial Group, LLC
- Axiom Capital Management, Inc.
- BCG Securities, Inc.
- Benjamin & Jerold Brokerage I, LLC
- Cabot Lodge Securities, LLC
- Calton & Associates, Inc.
- Cape Securities, Inc.
- Capital Financial Services, Inc.
- Capital Investment Group, Inc.
- Cascade Financial Management, Inc.
- Center Street Securities, Inc.
- Coastal Equities, Inc.
- Colorado Financial Service Corp.
- Concorde Investment Services, LLC
- Crown Capital Securities, L.P.
- Crystal Bay Securities, Inc.
- H. Hill Securities, LLLP
- David A. Noyes & Company
- Dawson James Securities, Inc.
- Dempsey Lord Smith, LLC
- Detalus Securities, LLC
- DFPG Investments, Inc.
- Dinosaur Financial Group, LLC
- Emerson Equity LLC
- Financial West Group
- FSC Securities Corp.
- Geneos Wealth Management, Inc.
- Great Point Capital, LLC
- Hightower Securities, LLC
- IBN Financial Services, Inc.
- Innovation Partners LLC
- International Assets Advisory, LLC
- Investment Architects, Inc.
- Kalos Capital, Inc.
- Kingsbury Capital, Inc.
- Landolt Securities, Inc.
- Lewis Financial Group, L.C.
- Lion Street Financial, LLC
- Lowell & Company, Inc.
- Madison Avenue Securities, Inc.
- McDonald Partners LLC
- McNally Financial Services Corp.
- Moloney Securities Co., Inc.
- Money Concepts Capital Corp.
- MSC – BD LLC
- National Securities Corp.
- Newbridge Securities Corp.
- Orchard Securities, LLC
- Pariter Securities, LLC
- Partier Securities, LLC
- Private Client Services, LLC
- Purshe Kaplan Sterling Investments
- Royal Alliance Associates, Inc.
- Sagepoint Financial, Inc.
- Sandlapper Securities, LLC
- SCF Securities, Inc.
- Sentinus Securities, LLC
- Silber Bennett Financial, Inc.
- Stephen A. Kohn & Associates, Ltd
- Stephen A. Kohn & Associates, Ltd.
- Triad Advisors, LLC
- Uhlmann Price Securities, LLC
- United Planners’ Financial Services of America, LP
- Vanderbilt Securities, LLC
- Vestech Securities, Inc.
- Western International Securities, Inc.
- Westpark Capital, Inc.
- Whitehall-Parker Securities, Inc.
- Wilmington Capital Securities, LLC
- Windsor Street Capital, LP
- Woodbury Financial Services, Inc.
Given the high commissions with GPB Capital and some of the reported internal issues, it seems that GPB Capital and its various offerings may have been sold to many investors unsuitably. The offerings that Goodman & Nekvasil, P.A. is investigating are:
- GPB Holdings LP
- GPB Holdings II
- GPB Holdings III
- GPB Automotive Portfolio LP
- GPB Waste Management, LP
- GPB NYC Development LP
- GPB Cold Storage
In a statement as reported by Wealthmanagement.com, William Galvin claims that “While my Securities Division’s investigation is in the very nascent stages, recent activity within GPB raises red flags of potential problems. These red flags, coupled with the fact that sales of private placements by independent broker/dealers have been an ongoing source of investor harm [that] have led to this investigation,”.
Investors in GPB Capital Holdings May Recover their Losses with Goodman & Nekvasil, P.A.
If you invested in GPB Capital Holdings or any of its offerings, Goodman & Nekvasil, P.A. may help you. Goodman & Nekvasil, P.A., a Clearwater, Florida, law firm with a national practice representing victimized investors, has recovered more than $180 million dollars on behalf of victimized investors.
All our cases are handled on a purely contingency fee basis by Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA. Kalju Nekvasil, Esq. has practiced in this area of the law for more than 35 years.
There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.
If you incurred investment losses in GPB Capital Holdings or any of its offerings and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.
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