Investor Alert! GPB Capital Confirms Its Investors Have Lost Money

NEW YORK – 06-26-2019 — Shepherd, Smith, Edwards & Kantas (“SSEK Law Firm”) has been investigating GPB Capital investor claims for almost a year and is representing several investors related to that investigation.  It has been clear for some time that GPB Capital investors have lost some of their money, however, the amount of the losses had been unclear and unconfirmed.  That changed in the last week when GPB Capital confirmed investor losses in its various funds.  According to GPB Capital, those losses range between 25% and 73%, depending on which fund an investor purchased.

GPB Capital has issued the following funds: 

  • GPB Holdings
  • GPB Holdings II
  • GPB Holdings III
  • GPB Automobile Portfolio
  • GPB Cold Storage
  • GPB Holdings Qualified
  • GPB Waste Management
  • GPB NYC Development 

According to GPB, it raised more than $1.5 billion from investors to operate these funds.  However, the vast majority of the money, roughly $1.27 billion, was raised for the GPB Holdings II fund and the GPB Automotive Portfolio fund.

There have been concerns about GPB Capital since at least April 2018, when the company missed important SEC filing deadlines.  The news got worse in the summer of 2018, when GPB announced it would suspend the sale of its funds as well as distributions for those funds while it had its financials audited.  Only a few months later, GPB’s auditor abruptly resigned.  As a result, the SEC, FINRA and several state securities regulators opened investigations into GPB Capital before the end of 2018.  Then, in February 2018, the FBI raided GPB Capital’s offices in New York.

In light of all of the negative news concerning GPB Capital, it became clear the investments could not be worth their original value.  As a result of that inevitable reality, one of the custodial firms for these investments, NFS (Fidelity’s clearing company), sent a letter to its brokerage customers recently telling them that they must either obtain an actual value of the various GPB Capital funds held on NFS’s books or NFS would no longer carry them.  Apparently in response to that demand, GPB Capital sent out a letter to the various brokerage firms who sold GPB Capital investments as well as to investors admitting to the losses in its funds.  In particular, GPB Capital stated that investors in the GPB Automotive Portfolio have lost 39%.  According to GPB, investors in GPB Holdings II have lost 25.4%.  GPB Capital’s other funds have lost between 25% and 75%, according to the company.  All of these estimated losses are as of the end of 2018, meaning investors could have lost more over the last six months.  

If you invested in any GPB-related funds, please contact SSEK Law Firm today for a free, confidential evaluation of your investments and legal options.  We have a team of attorneys, consultants, and staff with over 100 years of combined experience in the securities industry and in securities law that are ready to assist you in recovering your investment losses.

Media Contacts:

Company Name: Shepherd, Smith, Edwards & Kantas Law Firm
Full Name: Sam Edwards
Phone: 800-259-9010
Email Address: Send Email

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About the Author: Carrie Brunner

Carrie Brunner grew up in a small town in northern New Brunswick. She studied chemistry in college, graduated, and married her husband one month later. They were then blessed with two baby boys within the first four years of marriage. Having babies gave their family a desire to return to the old paths – to nourish their family with traditional, homegrown foods; rid their home of toxic chemicals and petroleum products; and give their boys a chance to know a simple, sustainable way of life. They are currently building a homestead from scratch on two little acres in central Texas. There’s a lot to be done to become somewhat self-sufficient, but they are debt-free and get to spend their days living this simple, good life together with their five young children. Carrie writes mostly on provincial stories.
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