NEW YORK, June 12, 2019 (GLOBE NEWSWIRE) -- Fitapelli Kurta, a New York city based law firm, is interested in representing investors in limited partnerships offered by GPB Capital. These investments include interests in GPB Holdings, GPB Automotive and GPB Waste Management. The law firm has already successfully recovered monies on behalf of multiple investors in GPB limited partnerships, by filing arbitrations before the Financial Industry Regulatory Authority. If you, or someone you know, invested in GPB Holdings, please contact us at 877-238-4175 or info@fkesq.com for a free and confidential consultation.
GPB Capital is the sponsor of at least half a dozen different funds and raised nearly $2 billion through a network of over 60 broker-dealers throughout the United States. GPB Capital Holdings is currently the focus of multiple investigations, including investigations by the Securities and Exchange Commission, the Financial Industry Regulatory Authority and, most seriously, the FBI. In addition to investigations into GPB directly, our firm is also aware of other investigations into the broker-dealers who marketed and sold GPB to their retail customers. Here is a timeline of events, which led to the February 2019 FBI raid of GBP’s Manhattan headquarters:
April 2018: GPB Holdings announces that distributions would be reduced from 8% per year to 4%.
September 2018: The State of Massachusetts sends subpoenas to all 63 broker-dealers who sold private placements for GPB.
August 2018: GPB notifies the broker-dealers who sold GPB Automotive that its financials should no longer be relied upon.
November 2018: GPB’s auditor, Crowe LLP, resigns. GPB Holdings also announces that it will immediately suspend the payment of distributions to limited partners.
December 2018: InvestmentNews reports that GPB is under investigation by the Securities and Exchange Commission and FINRA.
February 2019: The FBI raids GPB’s Manhattan headquarters.
The broker-dealers who sold private placement interests in funds offered by GPB Capital, including GPB Holdings, GPB Automotive and GPB Waste Management had an obligation to conduct reasonable due diligence on GPB. Recently, a former compliance officer from one of these broker-dealers came forward as a whistleblower to allege that GPB Holdings II should have never been approved for sale. According to the whistleblower’s allegation, GPB should not have been approved for sale to retail customers because, “GPB Capital Holdings, LLC, were utilizing investor funds to monetize personal business interest.” This allegation is consistent with other public allegations against GPB Holdings, including an allegation by Patrick Dibre, a former operating partner who alleged in a complaint filed in New York State Court that investor funds were being grossly misused. Specifically, Mr. Dibre alleged that the officers and directors of GPB Holdings misused partnership assets for their own personal benefit at the expense of investors.
Our law firm believes that many of the broker-dealers who sold interests in limited partnerships offered by GPB ignored very serious red flags at the expense of their retail customers. These broker-dealers were motivated by one factor – money. Specifically, the broker-dealers who sold limited partnership interests in GPB were paid tens of millions of dollars to sell these funds. Our law firm believes that the strong financial incentive compromised the due diligence process at many broker-dealers.
Investors have a limited amount of time to attempt to recover funds. If you are interested in learning more about how you may be able to recover all or a portion of your investment in GPB, please feel free to contact attorney Marc Fitapelli or Jonathan Kurta at 212-658-1500 or info@fkesq.com.
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