26 Nov PEIFFER WOLF – MEYER WILSON: NEW GPB CAPITAL STATEMENTS TO INVESTORS CONFIRM PONZI SCHEME CONCERNS OUTLINED IN LAWSUIT
NEW YORK CITY – November 26, 2019 – November 22nd updates to GPB Capital Holdings (GPB Capital) investors deepens concerns laid out in the November 6th class action lawsuit filed by Peiffer Wolf Carr and Kane (Peiffer Wolf) and Meyer Wilson. The lawsuit alleges that GPB Capital is a Ponzi scheme through which at least $1.8 billion was run, with most of the proceeds ending up in the pockets of principals, behind-the-scenes hidden partners, brokerage firms paid huge commissions, and a network of accountants.
The November 22nd statements (Automotive and GPB Holdings II) admit to all of the following:
- The GPB Capital auditor has suspended all work.
- The GPB Capital Audit Committee is resigning on November 27, 2019.
- Despite earlier assurances to investors, financials will not be coming out by the end of the year, and no deadline has been set for audited financials.
- Although the numbers lack transparency and reliability, GPB is conceding that its Automotive Portfolio has lost at least $212 million and GPB Holdings II has lost at least $125 million.
- GPB is also blocking any transfer of interests in the GPB funds on the secondary private market, leaving investors holding the bag.
Joseph Peiffer, managing partner, Peiffer Wolf, said: “We said it before, and it bears repeating: GPB Capital was rotten to the core from day one. The new statements issued by GPB Capital are a nightmare for investors that confirm our worst suspicions. This is what happens to Ponzi schemes when the flow of new money dries up.”
Courtney Werning, attorney, Meyer Wilson, said: “GPB Capital has an extensive network of ‘enablers’ in the brokerage firms and accounting firms that made this $1.8 billion scheme possible. The important thing to remember here is that GPB Capital did not have much of an internal sales operation and was reliant on third parties to dig into investors’ pockets to clean them out. So, there are a lot of parties here responsible for the systematic fleecing of thousands of U.S. investors.”
ABOUT THE FIRMS
Peiffer Wolf Carr & Kane, APLC is a national law firm with offices in New York, New Orleans, Cleveland, San Francisco, Los Angeles, Austin, and Missouri. https://gpblawyer.com/
Meyer Wilson, Co., is a national law firm with offices in Ohio, California, and Michigan. www.investorclaims.com
MEDIA CONTACT: Alex Frank, (703) 276-3264 or [email protected].
EDITOR’S NOTE: A streaming audio recording of the earlier November 6th news event is available online at https://brokerwatch.com/news-conference-audio-gpb-rotten-to-the-core-from-day-one/.
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