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GPB Capital Share Prices Plummet - Investment Fraud Lawyers File Claims to Recover Losses

GPB Capital Share Price

GPB Capital Share Price

GPB Capital Investigation

GPB Capital Investigation

Investors are very alarmed by the massive drop in their GPB Capital share prices and having investment fraud lawyers recover losses.

PALM BEACH, FL, USA, June 24, 2019 / -- On June 21, 2019, the media reported that GPB Capital announced that some GPB Capital share prices declined as much as 73%. This news is devastating for many GPB Capital investors and specifically reports substantial declines in value for two of the largest GPB investment funds.

Despite months of negative news and reports from a variety of different sources, broker-dealer firms and the professional financial advisors who earned a reported $100 million in commissions in selling GPB Capital to their customers continued to report the value of the GPB Capital investment funds at the original purchase price value on customer account statements (despite all of the negative information). Those same broker-dealers and professional financial advisors also in some cases improperly continued to recommend that investor customers continue to “hold” these investments and ignore the negative information.

The attorneys at (Haselkorn & Thibaut, P.A.) have filed numerous claims on behalf of GPB Capital investors and they are continuing their investigation into the GPB Capital issues as well as investigations in the activities by various broker-dealer firms and financial advisors who were recommending GPB Capital investment funds to their clients. Investors have a limited time to recover losses and are encouraged to call 1-800-856-3352 for a free review of their case.

For months now, many GPB Capital investors were able to tune out the material negative news reports and were comfortable sitting on the sidelines because when their monthly account statements arrived in the mail, the statements continued to reflect the full original purchase price for those investment funds. While experienced broker-dealers and professional financial advisors well knew those reported values were likely not accurate reflections of the value of those investment funds, they left the customers to fend for themselves (as they had already earned their commissions).

After GPB Capital recently announced a substantial drop in the value its two largest investment funds (GPB Holdings II and GPB Automotive Portfolio) investors are now left wondering what they can do to try and recoup their investment losses. Other GPB Capital investments that may be impacted include: GPB Holdings I, GPB Waste Management Fund, GPB Cold Storage, and GPB NYC Development. Some customers are likely to be surprised when they receive their account statements in the mail next month, and that is likely only the beginning.
As reported on June 21, 2019, the year-end 2018 values are reflecting substantial losses for investors, and keep in mind GPB Capital has not yet revealed the true and current value of its funds for 2019. Considering that this announcement comes on the heels of a slew of bad news in 2018 for GPB Capital, it is highly unlikely the current values (when they are finally reported) will improve, in fact, just the opposite is likely.

In 2018, GPB Capital suspended redemptions (purportedly to focus on accounting and financial reporting issues). GPB later announced that its auditor had resigned (and the reason given was quite disconcerting: it was due to perceived risks … that fell outside of the internal risk tolerance parameters). As if that were not enough, GPB informed public investors in 2018 that authorities had made an unannounced raid of the GPB Capital offices in New York to collect material. Additional issues included various media outlets reporting that regulators and authorities (including the FBI, SEC, and FINRA) had launched investigations into GPB Capital. Finally, in the midst of a dispute with an insider, there were allegations in that pending litigation that included a reference to GPB Capital being a Ponzi scheme.

Why and how do so many public investors own so much GPB? Make no mistake, GPB private placements were marketed to public investors in most cases through professional financial advisors who earned commissions as high as 8% in selling these investments to unsuspecting public investors. So the answer is quite clear in many cases, it was greed. It has been reported that over $100 million in commissions from selling GPB Capital investments was paid to broker-dealers and professional financial advisors to incentivize their recommending these investments to public investor customers. In the process, more than $1.8 billion in capital was raised by GPB Capital in the process.

With up to 60 independent broker-dealer firms and thousands of professional financial advisors selling GPB investments funds over the past several years, the net effect here could be a massive loss for public investor customers all over the country. Well-known broker-dealer firms including Sagepoint Financial, Dawson James, FSC Securities, Advisor Group, and Woodbury Financial have marketed and sold the GPB investments to their clients.

GPB Capital investors may want to contact an attorney for a free, private consultation to discuss some of the options that may be available to some investors. In most cases the broker-dealer firms earned substantial revenue selling GPB Capital to investor customers and negligently or improperly performed the requisite due diligence and monitoring of the investments for the investor clients. Similarly, the professional financial advisors in the sales process made negligent or improper recommendations, were not properly supervised by the firms, and the ongoing monitoring as well as subsequent recommendations to “hold” were also negligent or improper.

For a free confidential consultation with one of our experienced attorneys, please call now 1-800-856-3352.

Jason Haselkorn
Haselkorn & Thibaut, P.A.
+1 561-585-0000
email us here