GPB Capital investment options include alternative investments that offer investors greater peace of mind and a more reliable source of income. GPB Capital, an alternative asset management firm based in New York, is the subject of multiple civil investigations and allegations of financial misconduct, which has led many investors to seek safer and more dependable investment alternatives.
Investors who have GPB Capital investment options could be entitled to recover their lost money. The firm has reportedly suffered losses of up to 73%, and it has suspended redemptions from its investors. In addition, the SEC has filed a civil fraud complaint against the company.
Brokerage firms that sold GPB Capital private placements also may be liable for claims by aggrieved investors. These firms had a duty to adhere to suitability and due diligence rules when selling these alternative investment products to retail investors. If you were sold these private placements and experienced substantial losses, then you should consult an attorney about your potential claim for compensation.
According to the SEC, GPB Capital operates a $1.8 billion Ponzi scheme that defrauded wealthy investors by promising them significant returns from their investments in private partnerships with the company. Instead of generating these returns from business revenues, the company paid them out with the investments of other investors. The company’s operations are now in receivership, which is a process by which the court assigns a liquidator to manage the business.
The Securities and Exchange Commission has filed several enforcement actions against the company, including a civil fraud complaint that alleges that the company misled investors by paying investors’ dividends from the investments of other, new investors rather than from business revenue. The company is also accused of failing to disclose the nature of these private partnerships, failing to provide audited financial statements and not registering two of its funds with the SEC.
In addition, GPB Capital allegedly misappropriated investor funds to pay its own executives, to invest in other companies, and to finance marketing expenses. These practices violated federal and state securities laws.
If you were sold GPB Capital private placements, then you should consult an attorney about your rights. Investors who were sold these private placements by their financial advisor or brokerage firm have legal options, including filing FINRA arbitration claims against their advisers.
Investors should be aware that, buried deep in the contracts of most alternative investments is a mandatory arbitration clause. These clauses require arbitration to settle disputes between the investment adviser and the investor. Investors who wish to pursue a claim against their financial advisor for recommending unsuitable GPB Capital private placements should contact Stoltmann Law Offices, P.C. for a no-cost consultation with a lawyer who specializes in securities litigation. The firm represents investors in FINRA arbitration claims against their advisors and the brokerage firms with which they were registered. Contact us today to schedule your no-obligation consultation. We are available to help you get your money back.