Invest in GPB Capital Private Placements at Broker’s Recommendation?
Did you invest in private placements packaged by GPB Capital at the recommendation of your broker-advisor? Investment loss attorneys at Meyer Wilson are available to discuss your rights and options for claims against independent broker-dealers that sold the high-risk, high-commission private placements now under state and federal investigation.
GPB Capital Lawsuits Mounting, Firm Under FBI Investigation
GPB Capital recently became the focus of regulatory inquiries by FINRA, the SEC, and the FBI after raising $1.8 billion from accredited investors for private placement funds which were supposed to invest in auto dealerships and waste management businesses.
Though GPB has a broker-dealer sister company, it does not engage in direct sales to investors. Instead, its sister company, Ascendant Alternative Strategies, uses outside brokers to sell its private placements.
Those brokers are now the subject of growing scrutiny and at least two FINRA arbitration claims from customers who say they lost money due to misrepresentation and unsuitability:
- One claim from April 2019 alleges $175,000 in losses from an individual investor who bought GPB Capital private placements from Arkadios Capital. The complaint claims the brokerage firm misrepresented the GPB private placement, and that it was not suitable for the customer.
- Another claim from April 2019 was filed by an investor alleging $400,000 in damages after purchasing GPB private placements from SafePoint Financial Inc., an Advisor Group network broker.
Claimants’ allegations focus on a lack of due diligence by broker-dealers, who allegedly assured the high-risk, high-commission GPB private placements were strong and principals secure, and that the investments would provide years of sustained income.
Investment Loss Attorneys Serving Clients Nationwide
Because GPB Capital private placements in the automotive and waste management industries were sold by registered representatives from dozens of independent broker-dealers in significant amounts, more claims are expected to be filed by harmed investors.
If you suffered losses purchasing GPB private placements, Meyer Wilson is available to review your case and explore your options for recovering losses. Our legal team has been named among the 2019 “Best Lawyers in America” by U.S. News, and has recovered more than $350 million in losses caused by investment misconduct.
Call (888) 390-6491 or contact us online to speak confidentially with an attorney.