GPB Capital Holdings is being scrutinized by the SEC, FINRA and the FBI. The focus of the inquiry is whether proper disclosures were made in connection with GPB Capital raising $1.8 billion from investors through private placement funds. The funds ostensibly invest in auto dealerships and the waste management industry. However, there have been allegations that it is a Ponzi scheme. Brokers from numerous independent brokerage firms sold the high risk, high-commission private placements.
GPB Falsified Financial Documents and Mislead Investors
GPB has had a variety of problems. It has restated 2015 and 2016 financial statements of certain funds as part of an accounting review. The firm’s auditor, Crowe LLP, resigned. The firm is embroiled in litigation with a former employee, Patrick Dibre, who alleges that GPB purposely falsified financial statements and falsely reported to investors that they own certain dealerships.
In addition, Massachusetts announced that it is investigating some 63 broker-dealer firms selling private placements from GPB. GPB is also named in a class-action lawsuit brought by aggrieved investors.
Recover Investment Losses From GPB Holdings & Automotive
If you were sold investments in GPB Holdings or GPB Automotive, you should consult with an investment fraud lawyer with experience in representing defrauded investors. Call The Doss Firm, LLC toll-free at (855) 534-4581 for a free consultation.