GPB Capital Holdings Reports Major Losses in its Largest Funds

The alternative asset management firm is also being investigated by regulatory authorities on suspicion that the firm is a Ponzi scheme

GPB Capital Holdings, a New York-based alternative asset management firm, reported significant losses in the value of its investment funds. GPB Capital manages approximately $1.5 billion in investor capital invested in a variety of portfolios. On June 20, 2019, GPB Capital reported losses of 25.4% and 39% in its two largest funds, GPB Holdings II and GPB Automotive Portfolio, respectively.

GPB Capital Holdings is also being investigated by federal and state agencies on suspicion that it is a Ponzi scheme after allegations by one of the firm’s former business partners. The investigation comes after the firm first failed to report financial information to the SEC regarding their largest funds, then later in the same year when it announced it would no longer pay distributions to investors.

In addition to investigations into the firm itself, FINRA and other regulatory agencies are also conducting investigations into the broker-dealers that sold GPB funds.

GPB Capital started in 2013 and has reportedly raised money from approximately 4,000 investors. The two largest portfolios, GPB Holdings II and its automotive portfolio, raised $650 million and $622 million respectively. Many brokers, including those in other firms that sold GPB Capital funds, were incentivized to sell GPB funds with commission rates of nearly 8%.

Did You Lose Money Investing with GPB Capital Holdings?

Under FINRA Rules, brokerage firms are responsible for supervising their brokers’ activity and may be liable for any misconduct. Sonn Law Group is currently investigating GPB Capital and broker-dealers that sold GPB funds. If you lost money with investments in a GPB fund, Sonn Law Group is interested in speaking with you about a potential claim. Contact us today by filling out our form or giving us a call at 866-827-3202 to set up a free consultation.

Firms that Sold GPB Capital Holdings Funds

According to SEC regulatory filings for GPB’s largest fund, the following are companies that sold GPB Capital funds to investors:

• Accelerated Capital Group
• Advisory Group Equity Services LTC=D
• Aegis Capital Corp.
• Aeon Capital Inc.
• Arkadios Capital
• Ascendant Alternative Strategies
• Ausdal Financial Partners, Inc.
• Avere Financial Group, LLC
• Axiom Capital Management
• BCG Securities, Inc.
• Cabot Lodge Securities LLC
• Calton & Associates, Inc.
• Capital Financial Services, Inc.
• Capital Investment Group, Inc.
• Cascade Financial Management, Inc.
• Center Street Securities, Inc.
• Coastal Equities, Inc.
• Crown Capital Securities, LP
• David A. Noyes & Company
• Dempsey Lord Smith, LLC
• Detalus Securities, LLC
• DFPG Investments, Inc.
• Dinosaur Financial Group, LLC
• Emerson Equity LLC
• Financial West Group
• FSC Securities Corporation
• Geneos Wealth Management, Inc.
• Great Point Capital LLC
• H. Hill Securities, LLLP
• Hightower Securities, LLC
• IBN Financial Services, Inc.
• Innovation Partners LLC
• International Assets Advisory, LLC
• Investment Architects, Inc.
• Kalos Capital, Inc.
• Kingsbury Capital, Inc.
• Landolt Securities, Inc.
• Lion Street Financial, LLC
• Lowell & Company, Inc.
• McDonald Partners LLC
• Moloney Securities Co., Inc.
• Money Concepts Capital Corp.
• MSC–BD, LLC
• National Securities Corporation
• Newbridge Securities Corporation
• Orchard Securities, LLC
• Pariter Securities, LLC
• Private Client Services, LLC
• Purshe Kaplan Sterling Investments
• Royal Alliance Associates, Inc.
• Sagepoint Financial, Inc.
• Sandlapper Securities, LLC
• Silber Bennett Financial, Inc.
• Stephen A. Kohn & Associates, Ltd.
• Uhlmann Price Securities, LLC
• Vanderbilt Securities, LLC
• Vestech Securities, Inc.
• Western International Securities, Inc.
• Westpark Capital, Inc.
• Whitehall-Parker Securities, Inc.
• Wilmington Capital Securities, LLC
• Woodbury Financial Services, Inc.