GPB Armada Waste Management Losses?

Soreide Law Group is reviewing possible claims of unsuitability against brokers who sold investors Armada Waste Management LP. Evidently, alternative asset management company, GPB (New York, New York) issued more than $163,000,000 in Armada Waste Management securities. However, the fund’s approximate value now stands at just over $53,000,000. This 67% drop potentially caused investors enormous losses.

GPB Capital is known for its acquisition and operation of portfolio companies in the auto dealership industry and solid waste management industry. Regarding waste management, the company serves industrial, commercial and recycling sectors. GPB maintains a target portfolio of industrial, commercial, and residential collection services as well as recycling facilities, transfer stations, landfills and waste-to-energy facilities. Apparently, the company most recently acquired Mud Masters, an Ohio-based wastewater processing company.

Brokers Make Huge Commissions On GPB Capital Funds But Investors Possibly Suffer Huge Losses

GPB Capital is also known for paying substantial commissions to brokers selling its private placements. Particularly, the company paid an estimated $167,000,000 in commissions and fees for brokers’ transactions. This represents more than 9% of investors’ purchases. This is especially disturbing for investors whose GPB investments plummeted in value. Evidently, an estimated 60 securities firms cashed in by selling high risk, high-commission private placements while investors seemingly experienced losses.

FBI, SEC and FINRA Investigate GPB Capital

What’s more, GPB has not been exactly transparent on the reasoning behind its struggling financial performance. This makes it difficult for investors to assess the viability of the company. Additionally, its offices have been recently subject of Federal Bureau of Investigation, Securities and Exchange Commission, and Financial Industry Regulatory Authority investigations. Namely, the SEC, who the company began registering funds with in 2013, is investigating the veracity of GPB’s financials and its disclosures to investors about fund performance and capital distributions. These investigations could potentially uncover serious adverse issues about GPB.

Brokers’ Responsibility To Conduct Due Diligence Before Making Suitable Recommendations

Brokers and their firms are responsible for ensuring that private placements (GPB Armada Waste Management) are suitable for investors who brokers recommend the investment to. Not only that, but the securities firms must conduct due diligence on those speculative investments before making recommendations. It is possible that some brokers who sold GPB Capital Funds, including GPB Armada Waste Management, made bad investment recommendations. Fortunately, investors who bought investments because of their brokers’ unsuitable advice can sue to recover their losses.

Did You Suffer Losses By Investing in GPB Capital Funds?

Lars Soreide Highest Ethical Standard Award 2018

Lars Soreide Highest Ethical Standard Award 2018

Have you experienced losses by investing in GPB Capital Funds including Armada Waste Management? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.