Did Your Broker Recommend GPB Funds?

Soreide Law Group is investigating GPB Capital Holdings LLC (GPB) and/or several of the independent broker/dealers who sold GPB private placements. GPB Capital Holdings, LLC (GPB) is a New York-based alternative asset management firm focusing on acquiring income-producing private companies from various industries including automotive, waste management, and middle market lending.
In December of 2018, both the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) began their own investigations into GPB Capital Holdings, LLC.  The investigations by the federal regulators came after the Massachusetts securities regulators announced their own investigation into GPB in September of 2018, and the sales practices of over 60 independent broker/dealers who allegedly offered private placement investments in GPB Funds to their clients.
With 4,000 retail investors, beginning in 2013, GPB raised $1.3 billion through their GPB Automotive Portfolio and GPB Holdings II Funds.  They also purchased automotive dealerships in New England, Pennsylvania, New York and Texas.  Private placement investments are complex and high-risk for the investor.  Private placements are often sold with a high fee and commission.  It was reported that the commissions were allegedly up to 12%, which included an alleged 10% commission to the broker and the broker/dealer, and a 2% fee for offering and organization costs.  Countless investors were lured by attractive investment returns offered GPB. Brokers were often motivated to sell the GPB Funds because they earned high commissions. Many investors in GPB have lost significant amounts of their investment, because they were allegedly not aware of the high-risk to their conservative or retirement portfolios.
According to an article from InvestmentNews, some of the 63 independent broker/dealers in the Massachusetts’ investigation were Royal Alliance Associates Inc., Sagepoint Financial Inc., FSC Securities Corp. and Woodbury Financial Services Inc. It is alleged that Newbridge Securities, Ladenburg Thalmann, and Hightower Securities also sold GPB Funds.
It is important to note that the GPB Funds are private placement investments.  These investment can be very risky, complex and unsuitable for some investors. Private placements are, and should, only be available for accredited investors.  These investors must have a net worth over $1 million, individually or jointly, excluding their residence, or an income greater than $200,000, or $300,000 jointly, for the previous two years and earning the equivalent in the present year.
The firms that these brokers work with are required by law to supervise their brokers. The brokers, along with their firms, may be liable to for your investment losses in GPB Funds.  If you’ve suffered investment losses in GPB Funds due to your broker/dealer’s recommendations, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your financial losses through a FINRA arbitration at:  888-760-6552.
Soreide Law Group represents clients nationwide before FINRA.  We operate on a contingency fee basis—no fee to you if no recovery.