Investigation into GPB Capital Holdings

Investors were pitched attractive returns offered GPB and the broker-dealers who sold the GPB Funds. Brokers, however, were motived by the 8% commission for selling GPB funds. It now appears as if brokers received more than $100 million in commissions.

According to its website, “GPB Capital is a New York-based alternative asset management firm focusing on acquiring income-producing private companies.” Of note, GPB has a strong focus on the “automotive retail” sector.  Since 2013, GPB raised $1.3 billion from investors in its GPB Automotive Portfolio and GPB Holdings II funds (“GPB Funds”).


Investors were pitched attractive returns offered GPB and the broker-dealers who sold the GPB Funds. Brokers, however, were motived by the 8% commission for selling GPB funds. It now appears as if brokers received more than $100 million in commissions.


Peiffer Wolf Carr Kane & Conway is currently investigating claims against GPB, as well as the brokers and broker-dealers that sold GPB Funds. Contact Us Today by calling 585-310-5140 or by filling out an online Contact Form for a FREE Consultation. Concerns about possible misconduct and fraud are serious, and we are committed to fighting on your behalf.


Peiffer Wolf Carr Kane & Conway | Securities Law Firm Investigation


The Securities Law Firm of Peiffer Wolf Carr Kane & Conway (“Peiffer Wolf”) is investigating the sales practices and due diligence of Financial Industry Regulatory Authority (“FINRA”) broker-dealers who sold the private placement securities of GPB in the form of notes.


Furthermore, the notes that were sold are considered private placement, or non-traditional, investments that are not registered with the SEC. These inherently risky investments are often only suitable for sophisticated investors. However, many brokerage firms and financial advisors still sell these products because they offer higher commissions.


According to an August 2018 news report, GPB notified investors that they should no longer rely on 2015 and 2016 financial statements and reports. The CEO of GPB, David Gentile, disclosed that “certain material weaknesses in internal controls exist.” This disclosure followed an internal accounting review, freezing monthly interest payments.


Current or Former investor of GPB Capital Holdings?


If you invested in GPB Capital Holdings and have suffered losses, please Contact the Securities Attorneys of Peiffer Wolf Carr Kane & Conway for a FREE Consultation by filling out a Contact Form or by calling 585-310-5140.

GPB Capital Struggles


In July 2017, GPB entered litigation against a former business partner who allegedly reneged on a sale of multiple car dealerships. GPB sought the return of $42 million it had paid to the former business partner. As the lawsuit continues, additional problems for GPB have begun to surface:


  • April 2018: GPB failed to produce audited financial statements;
  • August 2018: GPB announced no new investor capital would be accepted;
  • September 2018: Massachusetts Division of Securities launches investigation
  • November 2018: GPB’s auditor resigned, citing perceived risks; and
  • December 2018: FINRA and SEC launch investigations into broker-dealers that sold GPB.


According to InvestmentNews, “As many as 60 broker-dealers have sold GPB funds. While many were smaller [independent broker-dealers] IBDs, among the most prominent listed in Securities and Exchange Commission filings were four Advisor Group broker-dealers: Royal Alliance Associates Inc., Sagepoint Financial Inc., FSC Securities Corp., and Woodbury Financial Services Inc.”


Brokers licensed with FINRA are required to follow rules, laws, and regulations when recommending the purchase or sale of a security. Additionally, the broker-dealers are required by law to supervise broker activities.

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Bad Brokers in the news

According to the public filings on the SEC website, the following brokerage firms were authorized to sell GPB Capital funds to their customers:

Accelerated Capital Group

Advisory Group Equity Services, Ltd

Aegis Capital Corp

Avere Financial Group, LLC

Axiom Capital Management, Inc.

Cape Securities, Inc.

Capital Financial Services, Inc.

Woodbury Financial Services, Inc.

Triad Advisors, LLC

Stephen A. Kohn & Associates, Ltd.

David A. Noyes & Company

Capital Investment Group, Inc.

Dawson James Securities, Inc.

D.H. Hill Securities, LLLP

Crystal Bay Securities, Inc.

IBN Financial Services, Inc.

Lewis Financial Group, L.C.

Lion Street Financial, LLC

Money Concepts Capital Corp.

Purshe Kaplan Sterling Investments

Uhlmann Price Securities, LLC

Aeon Capital, Inc.

American Capital Partners, LLC

Arete Wealth Management, LLC

BCG Securities, Inc.

Benjamin & Jerold Brokerage I, LLC

Cascade Financial Management, Inc.

Center Street Securities, Inc.

Wilmington Capital Securities, LLC

Vanderbilt Securities, LLC

United Planners’ Financial Services of America, LP

Coastal Equities, Inc.

DFPG Investments, Inc.

Innovation Partners LLC

Detalus Securities, LLC

FSC Securities Corp.

Investment Architects, Inc.

Lowell & Company, Inc.

Madison Avenue Securities, Inc.

National Securities Corp.

Sandlapper Securities, LLC

Vestech Securities, Inc.

Arkadios Capital

Ascendant Alternative Strategies, LLC

Ausdal Financial Partners, Inc.

Cabot Lodge Securities, LLC

Colorado Financial Service Corp.

Calton & Associates, Inc.

Concorde Investment Services, LLC

Windsor Steet Capital, LP

Westpark Capital, Inc.

Western International Securities, Inc.

Crown Capital Securities, L.P.

Financial West Group

Kalos Capital, Inc.

Landolt Securities, Inc.

Geneos Wealth Management, Inc.

Kingsbury Capital, Inc.

McNally Financial Services Corp.

Orchard Securities, LLC

Silber Bennett Financial, Inc.

Whitehall-Parker Securities, Inc.

FREE Consultation | 585-310-5140

Based on our experience, we believe that there are more investors who have been the victim of broker misconduct or investment fraud. If you invested in GPB Capital or hold GPB Private Placements, you should contact Peiffer Wolf Carr Kane & Conway immediately. Peiffer Wolf Carr Kane & Conway is currently investigating the brokers and broker-dealers that sold GPB. Concerns about possible broker misconduct and investment fraud are serious, and we are committed to fighting on behalf of investors.


If you believe you were a victim of investment fraud or broker misconduct, it is imperative to take action. Peiffer Wolf Carr Kane & Conway has represented thousands of victims, and we remain committed to fighting on behalf of investors. Contact Peiffer Wolf Carr Kane & Conway today by filling out a Contact Form on our website or by calling 585-310-5140 to schedule a FREE Case Evaluation.

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