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Armada Waste Management LP (GPB Waste Management LP) Securities Fraud Investigation

Summary

The White Law Group is investigating potential lawsuits involving FINRA-registered broker-dealers who may have improperly recommended high-risk GPB Capital private placement offerings.

According to news reports, GPB Capital Holdings raised between $600 million to $800 million from investors through sales by brokers and financial advisors at independent contractor broker-dealers. The company has reportedly sold $1.3 billion in these private placements, typically earning a 7% sales commissions for the brokers who sold them.

Currently under investigation by the FBI, GPB was reportedly visited by federal authorities in March of this year, when they collected documents and materials.

This follows Massachusetts Securities Division’s own investigation into GPB’s sales practices last year, after the company reportedly halted new sales and suspended distributions in order to straighten out its accounting of two of its offerings, GPB Holdings II and GPB Automotive Portfolio.

One of the high-risk, illiquid, private placement offerings sold by GPB Capital, GPB Waste Management LP, has recently changed its name to Armada Waste Management, LP, according to a letter to investors on February 13, 2019.

Meanwhile, the company has yet to file updated financial reports and investors are left wondering what is going on with their investments.

The White Law Group continues investigating the liability that FINRA-registered brokerage firms may have for improperly selling alternative investment products such as those offered by GPB Capital, to investors.

Despite the risks of investing in private placements, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.

Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.

Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.

If you are concerned about your investment in Armada Waste Management LP or another GPB Capital offering, The White Law Group may be able to help. Please call the offices at 888-637-5510 for a free consultation with a securities attorney.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois.

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit Homepage.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.