A lawsuit has been filed on behalf of an investor in GPB Automotive Fund.
The Sonn Law Group is investigating allegations that brokers have recommended investments in GPB Capital Holdings or its affiliates without fully disclosing the risk associated with them. If you or a family member has suffered losses investing in GPB Capital Holdings, we want to discuss your case. Please contact us today for a free review of your case.
Nationwide securities fraud attorneys at Stoltmann Law Offices, P.C. filed a FINRA dispute on behalf of an investor who alleged she was solicited by her financial advisor to invest her IRA money in the GPB Capital Automotive Fund, L.P. The claim alleges that the firm:
- Failed to perform adequate due diligence in the GPB Automotive Fund and ignored red flags about the offering so they could receive 10% commission on the investment;
- Ignored the objectives, risk tolerance, and financial acumen of the investor by concentrating nearly 90% of her IRA in the GPB Automotive Fund;
- Failed to adequately supervise the conduct of this financial advisor, who had over twenty customer complaints prior to these solicitations; and
- Sold the investments based on misrepresentations and omissions in violation of state securities laws and consumer protection statutes.
Finra Rule 2011
Joe Wojciechowski, Stoltmann Law Offices attorney, stated, “Brokerage firms have an iron-clad responsibility, rooted in FINRA Rule 2111, the ‘suitability rule’, to perform due diligence on a private placement like GPB Automotive Fund. This is a gatekeeper function designed to ensure a private placement is suitable for at least some investors.
Our investigation reveals that brokerage firms regularly ‘check the boxes’ in the due diligence process because of the conflict of interest between the firm and their clients: if the firm rejects the offering, they can’t collect their 10% commission.”
Contact Us Today
GPB Capital has been at the heart of an increasing amount of litigation alleging fraudulent conduct by GPB. If you were sold investments in any of the GPB funds, please contact us.
The Sonn Law Group is currently investigating allegations that brokers recommended investments with 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 866-827-3202 at complete our contact form.
Recent News Related to GPB Capital
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- GPB Capital Lawsuit News & Updates — Recover Your Investment Losses (4/14/2021)
- Michael Cohn, Former CCO of GPB Capital, Sentenced to 9-Months House Arrest (4/12/2021)
- Federal Government Seeking 6-Month Prison Sentence for Michael Cohn, Former CCO of GPB Capital (3/22/2021)
- GPB Capital Holdings Fraud Trial Put on Hold (3/16/2021)
- Triad Advisors Named in Customer Complaints Alleging Sales of GPB Capital (2/28/2021)
- Claimant Awarded Damages in FINRA Arbitration for Losses Sustained Investing in GPB Capital (2/22/2021)
- SEC Seeks Appointment of Independent Monitor for GPB Capital Holdings (2/16/2021)
- SEC Says GPB Capital Holdings Ponzi Scheme Defrauded 17,000 Investors (2/8/2021)
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