GPB Capital Holdings Delays Filing with the SEC again
Have you suffered losses investing in GPB Capital Holdings private placements? If so, the securities attorneys at the White Law group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
According to an article in Investment News on Thursday, GPB Capital Holdings, a leading seller of high-risk, high-commission private placements, has shown no signs of filing financials a year after stating its intention to take a break in raising money while it straightens out the accounting and financial statements of two of its existing funds.
The company reportedly suspended redemptions of funds until the audited financial statements have been released and public filings are completed.
GPB who has reportedly raised close to $1.8 billion in investor money since 2013, has missed several deadlines to file financial statements with the SEC for two of its largest funds, GPB Holdings II and GPB Automotive Portfolio, which combined have close to $1.3 billion in investor capital.
GPB Automotive Portfolio and GPB Holdings II, have reportedly paid brokers $100.1 million in commissions at a rate of 7.9% since inception.
Dealing with proper accounting standards was allegedly the reason for the delay last year. What’s the hold up now? According to Investment News, “The company won’t say, but keep in mind that GPB’s CEO and lead partner, David Gentile, is a CPA. That means even the accountant isn’t doing the accounting at GPB.”
This begs the question, what is the real value of these GPB investments? Investors are apparently not the only ones with questions. According to news reports, the FBI came to visit the GPB offices in February and collected documents with a search warrant.
Update on June 21, 2019
Now more bad news for investors. The company today reported significant losses in the value of the same two investment funds, GPB Holdings II and GPB Automotive Portfolio, which have seen declines in value, respectively, of 25.4% and 39%.
Recovery of Investment Losses in GPB Capital HOldings
Private Placement investments such as GPB offerings are highly complex, high risk investments. They are only suitable for sophisticated, accredited investors and institutions.
If you have suffered losses in a GPB Capital Holdings private placement offering please call the securities attorneys at The White Law Group for a free consultation.
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