Gary Imel, Formerly of Ameriprise Financial, Facing Investigation Over GPB Capital Losses

Imel is accused of recommending unsuitable investments in GPB Capital Holdings.

The Sonn Law Group is investigating allegations that brokers recommended investments in GPB Capital Holdings. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Former Ameriprise Financial Services, Inc., and Kalos Capital, Inc., broker, Gary Imel (CRD#: 254765) is the subject of FINRA arbitration filed by a former client alleging that he made unsuitable investment recommendations.

The client is an elderly, inexperienced investor who sought conservative investments. According to the complaint, Imel is accused of promising his former client that he would keep her assets and that she could expect a return on principal from her investments. 

Unfortunately, the claim alleges that Imel placed his client’s funds in unsuitable and high-risk investments. It is alleged that Imel recommended his client investment in real estate investment trusts (REITs), such as Northstar Income II, and private placements, including GPB funds. The client is seeking $500,000 in damages, and alleges, “Unsuitable investments, breach of fiduciary duty, negligence, etc.”

GPB Capital Holdings is a New York-based investment firm that offers exempt, private-placement securities. These investments inherently have a high degree of risk due to their nature as unregistered securities offerings (and without regulatory oversight).

The investment firm raised $1.8 billion from investors through private placements that invested in automotive dealerships, the waste management industry, and middle-market lending. These investments were high risk and high commission (nearly 8%) private placements.

GPB Capital has been embroiled in legal disputes in the recent past. In November 2019, GPB informed investors that they would not be supplying the audited financial reports by their deadline, even though investors have been awaiting the audits since April. 

In June 2019, GPB Capital Holdings reported losses in the value of two of its investment funds: GPB Holdings II and GPB Automotive Portfolio. GPB Holdings II saw a decline in value of 25.4% and GPB Automotive Portfolio has decreased by 39%. GPB Holdings II and GPB Automotive Portfolio make up the majority of GPB Capital Holdings’ portfolio, raising $1.27 billion from investors.

GPB Capital Holdings manages the following nine private placements:

• GPB Automotive Portfolio, LP
• GPB Cold Storage LP
• GPB Holdings, LP
• GPB Holdings II, LP
• GPB Holdings III, LP
• GPB Holdings Qualified, LP
• GPB NYC Development, LP
• GPB Waste Management Fund, LP

GPB Capital Holdings’ other funds also reported declines in an estimated value of 25% to 73%.

Contact Us Today

The Sonn Law Group is currently investigating allegations that Gary Imel recommended investments in GPB Capital Holdings. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.