GPB Capital Holdings is the firm that operates a group of funds including Prime Automotive. Investors in these funds were marketed as getting an equity stake in auto dealerships with an opportunity for substantial returns. These returns would be generated through a combination of cash payments, a payout from sales proceeds, and other sources. Unfortunately, these promises were made to investors based on false and misleading information. In reality, GPB Capital was a Ponzi scheme that operated for many years. The company has halted sales to new investors and suspended redemptions. It is also facing a number of pending lawsuits and investigations by the FBI, State of Massachusetts, and the Financial Industry Regulatory Authority (FINRA).
Investors who lost money on GPB investments should consider seeking legal representation to address their losses. They may be able to recover their investment losses through the filing of a FINRA customer arbitration claim against the brokerage firms that sold them the investments and the advisors who recommended them.
In many cases, these financial advisors owe a fiduciary duty to their clients. That means they must always put their client’s interests ahead of their own. They must make sure that the investments they recommend are in line with the client’s stated risk tolerance and their overall investment goals. If they don’t, they could be liable for breaching their fiduciary duties to their clients.
The GPB Capital scandal is a reminder of the potential risks associated with investing in private placements. While modern times and increased financial oversight have limited the ability for someone to run a Ponzi scheme, there are still plenty of bad actors out there who exploit unsuspecting investors.
Contact Haselkorn & Thibaut for GPB Capital Holdings Cases
The attorneys at Haselkorn & Thibaut are currently representing numerous investors in FINRA claims filed against the brokerage firms that sold them Contact Haselkorn & Thibaut for GPB Capital Holdings cases and other private placements. Our attorneys specialize in recovering investor losses and damages. Our investment fraud lawyers have recovered millions of dollars for investors across the country and around the world.
The alleged actions of Gentile and Schneider appear to be the last straw for many GPB Capital investors. For months (and in some cases a year) these investors were told to “hang in there” by their financial advisors who promoted these investments. In the face of continued lack of financial reporting, ongoing financial concerns, continued negative news, and now indictments of former principals, it’s clear that waiting for some sort of resolution isn’t an option.