National investor fraud law firm KlaymanToskes (“KT”) has filed multiple Financial Industry Regulatory Authority (“FINRA”) arbitration claims for clients who were solicited by FINRA broker-dealers to purchase private placement securities of GPB Capital Holdings (“GPB”) in the form of notes, and continues to investigate (“GPB Automotive Portfolio LP Investigation”) the sales practices related to the failure to supervise financial advisor “selling away” private securities transactions related to GPB Capital Holdings Offerings to investors.
GPB Automotive Portfolio Purchase Agreement
On September 12, 2021, GPB Automotive Portfolio disclosed that Group 1 Automotive, Inc. entered into a Purchase Agreement to buy substantially all of the assets or equity in GPB Automotive Portfolio, LLC and other selling entities. The purchase price is expected to be $880 million.
The SEC Charges GPB Capital Holdings and Key Executives with Securities Fraud
According to the Securities Exchange Commission (SEC), key executives of the companies were charged with securities fraud for “a long-running and multi-faceted fraudulent scheme perpetrated by GPB Capital” and its owner and CEO, David Gentile; Broker Dealer Ascendant Capital and its owner and CEO Jeffrey Schneider; and a former managing partner of GPB Capital, Jeffrey Lash. GPB Capital is the general partner and fund manager for limited partnership funds, which fleeced unwary investors through fraudulent misrepresentations concerning the securities Offerings.
According to the SEC Complaint, “[s]ince its founding in 2013, GPB Capital has raised in excess of $1.7 billion for at least five limited partnership funds from approximately 17,000 retail investors nationwide, approximately 4,000 of whom are seniors. Nearly all of the $1.7 billion raised is still at risk: in 2018 GPB Capital suspended all redemptions and distributions and, according to a recent regulatory filing, GPB Capital’s assets are far below its obligations to the investors”.
GPB Automotive Portfolio LP Investigation
According to KlaymanToskes, GPB Capital Holdings sold and marketed non-registered private placement notes through inadequate disclosure of illiquidity, high risks, and commissions which made the investments unsuitable for most investors. Securities under investigation include:
- GPB Holdings, LP
- GPB Holdings II & III, LP
- GPB Cold Storage, LP
- GPB Automotive Portfolio, LP
- GPB Waste Management, LP
KlaymanToskes’s investigation focuses on sales practice violations related to recommended speculative investments in GPB Capital, which paid more than 10% in selling commission to financial advisors and registered investment advisors whose clients invested $1.7 billion in these high-risk private placement securities through brokerage firms, including:
- TD Ameritrade, Inc.
- FSC Securities Corp.,
- Woodbury Financial Services Inc.
- Advisory Group Equity Services, Ltd.,
- Coastal Equities, Inc.
- Hightower Securities, LLC,
- Concorde Investment Services, LLC, ,
- Crown Capital Securities, L.P.,
- Capital Investment Group, Inc.
- Capital Financial Services, Inc.,
- Kalos Capital, Inc.,
- Madison Avenue Securities, LLC,
- Moloney Securities Co. Inc.,
- Money Concepts Capital Corp.,
- National Securities Corporation,
- Royal Alliance Associates, Inc.,
- Sagepoint Financial Advisors, Inc., and
- Woodbury Financial Services, Inc.
If you were recommended by brokerage firms and/or registered investment advisors to invest in private placement securities of GPB, and have information relating to sales practices and financial misconduct of financial advisors in connection with the sale of GPB, you are encouraged to contact Lawrence L. Klayman, Esq., at (561) 542-5131, and download our Special Investor Report.
About Klayman Toskes
KT is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation, on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm represents high net-worth, ultra-high-net-worth, and institutional investors, such as non-profit organizations, unions, public and multi-employer pension funds. KT has office locations in California, Florida, New York, and Puerto Rico.