Investors are very alarmed by the huge drop in their GPB Capital share rates and possessing investment fraud lawyers recover losses.
On June 21, 2019, the media reported that GPB Capital announced that some GPB Capital share rates declined as significantly as 73%. This news is devastating for many GPB Capital investors and specifically reports substantial declines in worth for two from the biggest GPB investment funds. Get more information about GPB Capital Holdings
In spite of months of negative news and reports from various various sources, broker-dealer firms as well as the experienced financial advisors who earned a reported $100 million in commissions in promoting GPB Capital to their clients continued to report the value of the GPB Capital investment funds at the original acquire price tag value on client account statements (despite all of the damaging facts). These exact same broker-dealers and qualified financial advisors also in some cases improperly continued to suggest that investor customers continue to “hold” these investments and ignore the damaging details.
The attorneys at www.InvestmentFraudLawyers.com (Haselkorn and Thibaut, P.A.) have filed quite a few claims on behalf of GPB Capital investors and they're continuing their investigation in to the GPB Capital concerns also as investigations within the activities by numerous broker-dealer firms and financial advisors who had been recommending GPB Capital investment funds to their clientele. Investors possess a limited time for you to recover losses and are encouraged to call 1-800-856-3352 for any free review of their case.
For months now, many GPB Capital investors had been capable to tune out the material unfavorable news reports and were comfy sitting on the sidelines due to the fact when their month-to-month account statements arrived inside the mail, the statements continued to reflect the complete original purchase price for those investment funds. Although experienced broker-dealers and specialist financial advisors nicely knew these reported values have been most likely not precise reflections of your value of these investment funds, they left the consumers to fend for themselves (as they had currently earned their commissions).
Right after GPB Capital not too long ago announced a substantial drop within the worth its two biggest investment funds (GPB Holdings II and GPB Automotive Portfolio) investors are now left questioning what they are able to do to try and recoup their investment losses. Other GPB Capital investments that could be impacted incorporate: GPB Holdings I, GPB Waste Management Fund, GPB Cold Storage, and GPB NYC Development. Some clients are likely to be shocked once they receive their account statements in the mail subsequent month, and that is certainly likely only the starting.
As reported on June 21, 2019, the year-end 2018 values are reflecting substantial losses for investors, and take into account GPB Capital has not however revealed the true and present worth of its funds for 2019. Thinking of that this announcement comes on the heels of a slew of bad news in 2018 for GPB Capital, it can be highly unlikely the present values (once they are lastly reported) will increase, actually, just the opposite is most likely.
In 2018, GPB Capital suspended redemptions (purportedly to concentrate on accounting and financial reporting problems). GPB later announced that its auditor had resigned (and also the reason offered was very disconcerting: it was resulting from perceived dangers … that fell outside from the internal danger tolerance parameters). As if that have been not enough, GPB informed public investors in 2018 that authorities had made an unannounced raid on the GPB Capital offices in New York to gather material. More concerns included several media outlets reporting that regulators and authorities (like the FBI, SEC, and FINRA) had launched investigations into GPB Capital. Ultimately, within the midst of a dispute with an insider, there were allegations in that pending litigation that incorporated a reference to GPB Capital getting a Ponzi scheme.
Why and how do countless public investors own so much GPB? Make no mistake, GPB private placements had been marketed to public investors in most cases via qualified financial advisors who earned commissions as high as 8% in promoting these investments to unsuspecting public investors. So the answer is pretty clear in lots of 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 skilled financial advisors to incentivize their recommending these investments to public investor prospects. Inside the process, far more than $1.8 billion in capital was raised by GPB Capital within the method.
With as much as 60 independent broker-dealer firms and thousands of professional financial advisors promoting GPB investments funds over the previous various years, the net impact right here might be a massive loss for public investor customers all over the nation. Well-known broker-dealer firms which includes Sagepoint Financial, Dawson James, FSC Securities, Advisor Group, and Woodbury Financial have marketed and sold the GPB investments to their clients.
GPB Capital investors could wish to get in touch with an attorney for any free, private consultation to go over several of the options that may possibly be out there to some investors. In most cases the broker-dealer firms earned substantial revenue promoting GPB Capital to investor clients and negligently or improperly performed the requisite due diligence and monitoring in the investments for the investor customers. Similarly, the skilled financial advisors inside the sales approach created negligent or improper recommendations, have been not correctly supervised by the firms, and also the ongoing monitoring too as subsequent recommendations to “hold” had been also negligent or improper.
To get a free confidential consultation with one of our experienced attorneys, please call now 1-800-856-3352.
Haselkorn and Thibaut, P.A.