GPB Capital has been accused of running a Ponzi-like scheme that defrauded thousands of investors across the country. As many as 17,000 investors have been affected according to the SEC. The alleged fraud could have caused well over $500 million in losses. Many individual investors, including retirees, may have suffered significant losses as a result.
An FBI Representative explained that misrepresentations were made regarding the GPB Capital holdings “through deceptive marketing practices, luring investors with promises of monthly distributions that would be covered by funds from the investments and not drawn from underlying invested capital…. However, this was all a lie… In truth, a significant portion of GPB’s distributions were paid directly from investor funds.”
At least three individuals affiliated with GPB Capital Holdings, LLC have been indicted and charged with securities fraud, wire fraud, and conspiracy. However, individual investors should consult with an experienced securities attorney to ensure that they can also recover losses suffered from GPB Capital investments.
Many brokerage firms recommended that their customers invest in GPB Capital Holdings’ high-risk, high-commission private placements. Customers who were recommended to invest in GPB by their broker may have a legal right to recover their losses. Firms and brokers are required to conduct reasonable due diligence regarding the investments and products they offer. They are further required to know the securities they recommend, properly and accurately disclose the risks associated with the investment, and only recommend suitable investments to their customers. If you were recommended to invest in GPB, your broker and brokerage firm may have violated the FINRA rules and their legal duties to you.
Private placement investments are complex, risky and often sold under a high fee and commission structure. This type of structure can put you at a disadvantage right out of the gate. A private placement has minimal regulatory requirements to abide by and doesn’t have to be registered with the SEC. Generally, the offering is aimed at a small pool of wealthy individuals or accredited investors.
If you or a loved one invested in GPB Holdings or in the following GPB funds, you may have a right to recover your losses:
- GPB Automotive Portfolio
- GPB Cold Storage
- GPB Holdings II
- GPB Holdings III
- GPB Holdings Qualified
- GPB NYC Development
- GPB Waste Management Fund
There are numerous brokerage firms who sold or may have sold GPB investments, including but not limited to:
- Aegis Capital
- Arkadios Capital
- Cabot Lodge Securities
- Coastal Equities
- Concorde Investment Services
- FSC Securities Corp.
- Geneos Wealth Management
- Geneos Wealth Management
- Kalos Capital
- Madison Avenue Securities
- National Securities Corp.
- Pursche Kaplan Sterling Investments
- Royal Alliance Associates Inc.
- Sagepoint Financial Inc.
- Western International Securities
- Woodbury Financial Services Inc.
What Our Clients Say
Below are some of the emails and letters that our clients have sent us.
At a time in our life when we were most vulnerable we lost control of our finances. We fell victim to a broker that took huge commissions and did not disclose that we were not able to access our money. Peter Mougey and his wonderful staff worked with us to make us whole again and got our money released. I cannot say enough about their work ethic, professionalism, and kindness during this stressful time for us. We had a 100% positive conclusion to our case and we strongly recommend Peter and the firm. We can now sleep at night! Fred & Pat H.
My husband and I were very pleased with the work that Peter and his team provided. He was very knowledgeable of the circumstances of our case and kept us informed throughout the process. He is extremely qualified and worked diligently on our behalf. We are positive that this case would not have been resolved in our favor had it not been for Peter's expertise and his passion. He definitely cares about his clients and we sincerely appreciate his efforts. Rachel C.
FRS is a governmental body. FRS retained the services of Peter Mougey of the LP law firm in a multimillion dollar lawsuit involving extremely complex issues. Mr. Mougey quickly mastered the issues and gave advice that was vital in bringing about a successful resolution. Two of the most important features of Mr. Mougey’s representation was his understanding of government and his ability to communicate complicated legal concepts to a 10-member board of trustees in language that was easily understood by all. I did not know Mr. Mougey before FRS retained him and, fortunately, have not experienced circumstances where the system would need his services again. However, if needed, I would have no hesitation in retaining his services again. Please let me know if you need any additional information or assistance. Steven S.
Edison's famous adage can't ever be ignored of course: 1 part inspiration and 99 parts perspiration. However the two attitudes must be present indissolubly--both are essential--if results are to be obtained. Peter Mougey’s group is aware of such a requirement, they work very hard at the latter, and the former comes easily to them, a rare combination anywhere to be found indeed. Raphael B.
I would like to express my sincere gratitude to Peter Mougey and your entire team on behalf of my family for the amazing job done during your representation. From day one I received kindness, rapid responses to all of my questions, with polite and patient encounters with all of your staff assistants. You are the best- and I will be eternally grateful to you and your entire team. Michelle E.