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 Holdings is a New York-based investment firm that offered nine different private placements: GPB Automotive Portfolio, LP; GPB Cold Storage LP; GPB Holdings, LP; GPB Holdings II, LP; GPB Holdings III, LP; GPB Holdings Qualified, LP; GPB NYC Development, LP; and GPB Waste Management Fund, LP.
More than 60 brokerage firms sold $1.5 billion of high-risk private placement GPB funds, including Royal Alliance Associates Inc., Sagepoint Financial Inc., FSC Securities Corp., and Woodbury Financial Services Inc. The private placement GPB funds of GPB Automotive Portfolio and GPB Holdings II raised $622.1 million and $645.8 million respectively.
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.
If you were a purchaser of GPB securities, please contact us for an evaluation of your specific facts and circumstances.