GPB Capital Holdings Losses
Aidikoff, Uhl & Bakhtiari is investigating the brokerage firms and sale practices regarding the sale of GPB Capital Holdings investments in high risk private placements. GPB Capital describes itself as a “New York-based alternative asset management firm that seeks to acquire income-producing private companies.”
GPB raised more than $1.5 billion in capital held in private limited partnerships that invest primarily in auto dealerships and waste management businesses. Interests in GPB funds were sold through more than 60 brokerage firms.
Since missing its April 30, 2018, deadline to register the raised funds, GPB’s offices in Manhattan have been searched by the FBI. The SEC also issued a subpoena to GPB seeking information.
In September 2018, Massachusetts Secretary of the Commonwealth William Galvin announced an investigation into 63 broker-dealer firms that sold private placements from GPB, including (amongst others): Royal Alliance Associates Inc., Sagepoint Financial Inc., FSC Securities Corp., Woodbury Financial Services Inc., Newbridge Securities, Ladenburg Thalman and Hightower Securities.
In November 2018, Crowe LLP, the firm’s auditor, resigned.
On June 21, 2019, GPB Capital reported significant losses in the value of GPB Holdings II and GPB Automotive Portfolio, which declined more than 25% and 39%, respectively. GPB’s other funds reported declines in estimated value ranging from 25% to 73%. Following the announcement, Fidelity Investments instructed its broker-dealer clients to remove GPB Capital-issued private placements from the Fidelity platform within 90 days. The GPB Capital funds are:
- GPB Automotive Portfolio, LP
- GPB Cold Storage LP
- GPB Eurobond Finance PLC
- GPB Holdings II, LP
- GPB Holdings III, LP
- GPB Holdings Qualified, LP
- GPB Holdings, LP
- GPB NYC Development, LP
- GPB Scientific, LLC
- GPB Waste Management, LP (formerly: GPB Waste Management Fund, LP)
If you are an investor that lost more than $100,000 in GPB related losses you should consider all legal options. If you wish to discuss your particular situation and the potential for the recovery of your investment losses, or you have information of interest, please contact us for an evaluation of your potential case.