The White Law Group is investigating potential claims involving GPB Capital Holdings and the liability broker dealers may have for unsuitably recommending high risk, illiquid private placement investments to investors.
According to reports yesterday, Massachusetts Secretary of the Commonwealth William Galvin announced a sweeping investigation into 63 broker-dealer firms selling private placements from GPB Capital Holdings.
The Massachusetts Securities Division is reportedly investigating sales practices regarding GPB after receiving a tip from an independent firm, according to a statement from his office on Wednesday.
As we told you last month, GPB has recently announced that it has halted sales of its alternative investments and suspended redemptions to concentrate its efforts on financial reporting.
Two of the funds, GPB Automotive Portfolio and GPB Holdings II, reportedly missed filing statements with the SEC, and the company is in the process of auditing its financial statements.
The company is also reportedly embroiled in a lawsuit with a former business partner regarding a $40 million auto dealership sale.
The securities division is requesting documents related to sales activity in Massachusetts, marketing documents provided to investors, and information regarding investor suitability.
According to Galvin, “recent activity within GPB raises red flags of potential problems.”
If you are concerned about your investment in a GPB Capital Holdings Investment, you may have recourse. Please contact the securities attorneys at The White Law Group for a free, no-obligation consultation at (888)637-5510.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.