Michael has over 20 years of experience representing individual and small business plaintiffs against the world’s large financial institutions, including Visa, Mastercard, and Chase.
We have filed a class action lawsuit on behalf of investors who have lost money in GPB Capital Funds. One June 21, 2019, GPB admitted that its funds had plummeted in value by as much as 73%, dividends haven’t been paid to investors for months, and redemptions have been suspended.
Read a copy of the class action complaint.
We are providing free legal consultations to GPB investors. Our attorneys can help you understand your options.
Recover Your GPB Losses
You may be able to recover your GPB losses. Contact us now for a free consultation.
FBI Raid at GPB Capital, Government Investigations Reportedly Underway
According to news reports, the FBI raided GPB’s offices looking for evidence of a Ponzi scheme. A former business partner accused GPB of being a Ponzi scheme in a court filing. The SEC is investigating the company. GPB’s auditor quit in November 2018. And GPB has suspended redemptions of its funds, which include:
- GPB Automotive Portfolio
- GPB Holdings II
- GPB Holdings III
- GPB Holdings Qualified
- GPB Cold Storage
- GPB NYC Development
- GPB Waste Management Fund
InvestmentNews: GPB Announces Up to 73% Drop in Funds' Value
On June 21, 2019, InvestmentNews reported that GPB Capital announced sharp declines in the values of its investment funds. According to the article, GPB revealed that at the end of 2018, its funds had declined in value by 25% to 73%, with its two largest funds declining by nearly 40% and 25.4% respectively. The company has yet not revealed the true and current value of the funds for 2019.
GPB Capital under Investigation by SEC, FBI, FINRA, and MA Attorney General
The Securities & Exchange Commission and FINRA are investigating GPB Capital’s financials and sales practices, according to Investment News.
In early 2019, the FBI raided GPB Capital Holding’s New York office, Inv News reports. The probe focused on questions aimed at determining whether GPB was operating as a Ponzi scheme, Inv News reports.
And the Massachusetts attorney general is investigating 63 brokers who sold GPB Capital’s “alternative investments,” reports Inv News. GPB Capital paid brokerage firms a commission of up to 12% for selling GPB private placements, a brokerage executive told Investment News.
Some of the brokers that sold GPB placements include:
- Royal Alliance Associates Inc.
- Sagepoint Financial Inc.
- FSC Securities Corp.
- Woodbury Financial Services Inc.
Is GPB a ponzi scheme?
Many spectators are speculating that GPB may be a ponzi scheme after Fidelity announced that it would be removing GPB from its platform starting in 90 days. And GPB’s former business partner, who helped it purchase car dealerships, has accused the company in court filings of running a Ponzi scheme. In Ponzi schemes, the investors who try to get out the earliest often receive more compensation than the ones who get out last, or don’t get out at all.
Our Securities Lawyers Have a Winning Record Against the World's Largest Companies Like GPB Capital
Our securities lawyers have recovered over a billion dollars on behalf of our clients against behemoths, such as Chase Bank, Mastercard, and Anthem Blue Cross Blue Shield. Read more about our results.
You “shouldn’t presume that powerful banks and other powerful interests can just get away with doing bad things. Good, qualified counsel that are committed to a cause can usually figure out how to prosecute such cases effectively and prevail.”
–Eric Gibbs, award-winning securities attorney
Praise from the Courts
Federal judge in our AT&T class action:
“I’ve always found them to be extraordinary counsel in terms of their preparation and their professionalism.”
Federal judge in our Chase lawsuit (resulting in $100 million settlement):
They “fought tooth and nail, down to the wire” to achieve “the best settlement that they could under the circumstances.”
Read more about what judges say about us.
GPB Auditor Resigns Amid Financial Irregularities
According to Investment News, GPB’s financial auditor — Crowe LLP — resigned near the end of the 2018 fiscal year.
This happened soon after GPB announced that it would need to restate its 2015 and 2016 earnings statements for certain of its funds, according to Inv News.
GPB also announced that it would not be taking any new investment money, so it could focus on straightening out the financials of its two largest funds, GPB Holdings and GPB Automotive Portfolio, Inv News reports.
GPB missed its SEC filing deadlines for its financial reporting on the GPB Holdings and GPB Automotive funds, reports Inv News.
GPB Capital is run by CEO David Gentile, a wealthy scientologist, and managing director Manuel Vianna, another scientologist, according to SMP.
GPB Too High-Risk for Some Investors
GPB “sells illiquid, high-risk and high-commission alternative investments,” according to Investment News, which reports that GPB Holdings has suspended redemptions on its private-placement investments following problems with its financial reporting.
Some GPB investors may have taken on more risk in their portfolios than they could afford, according to Investors’ Watchdog.
Investors’ Watchdog reports:
GPB investments are definitely not suitable for everyone, so I hope the siren song of high commissions doesn’t lead brokers to pitch GPB investment programs—like GPB Automotive Portfolio or GPB Holdings II—to retired schoolteachers and other investors who can’t afford a lot of risk.
Featured Securities Attorneys
Eileen oversees the firm’s securities practice and has over a decade of experience in the legal world. She received her law degree from American University in 2005.
David’s advocacy has generated major recoveries for consumers impacted by financial fraud. He was named to the Top 40 Under 40 by Daily Journal and a “Rising Star in Class Actions” by Law360.
Amanda is spearheading a securities lawsuit against NantHealth concerning fraudulent statements to investors about the success of its key product.
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Gibbs Law Group is a California-based law firm committed to protecting the rights of clients nationwide who have been harmed by corporate misconduct. We represent individuals, whistleblowers, employees, and small businesses across the U.S. against the world’s largest corporations. Our award-winning lawyers have achieved landmark recoveries and over a billion dollars for our clients in high-stakes class action and individual cases involving consumer protection, data breach, digital privacy, and federal and California employment lawsuits. Our attorneys have received numerous honors for their work, including “Top Plaintiff Lawyers in California,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” “Best Lawyers in America,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”
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