William Galvin, the Massachusetts secretary of state, has initiated a probe into the activities of broker-dealer firms who sold private placements sponsored by GPB Capital Holdings, according recently pubished news reports. The Massachusetts Securities Division has reportedly received information regarding the sales practice of a certain firm, and has requested information from a total of 63 involved in the sales of GPB Capital Holdings private placements.
According to ThinkAdvisor, these matters have led to a sweep of 63 broker-dealers that sell GPB private placements, with the division requesting data on the extent of sales activity in Massachusetts, disclosure and marketing documents that the firms provide to investors on the solicitations and data on investor suitability.
As InvestmentNews reported in July, 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 division is requesting documents in relation to sales activity in Massachusetts, marketing documents provided to investors, and information regarding investor suitability.