GPB Capital Holdings announced that a GPB Capital share prices declined as much as 73 percent. This information is devastating for several GPB Capital investors and especially reports significant declines in value for just two of the most significant GPB investment capital.
Despite months of damaging news and reports from a variety of different sources, broker-dealer companies and the specialist financial advisors who made a reported $100 million in commissions in selling GPB Capital to their clients continued to report the value of the GPB Capital investment capital at the initial purchase price worth on customer account bills (despite all the negative data ). Those same broker-dealers and professional financial advisers in some cases improperly continued to urge that investor customers are still”hold” these investments and dismiss the negative info.
The lawyers at www.InvestmentFraudLawyers.com (Haselkorn & Thibaut, P.A.) have registered numerous claims on behalf of GPB Capital investors and they are continuing their investigation into the GPB Capital issues in addition to investigations in the actions by different broker-dealer companies and financial advisors who were advocating GPB Capital investment capital to their clientele.
Investors have a limited time to recoup losses and are invited to review 1-800-856-3352 for a free review of their situation.
For months now, many GPB Capital investors were able to tune out the substance bad news reports and were comfortable sitting on the sidelines since when their monthly account statements arrived in the email, the statements continued to signify the full original purchase price for those investment funds. While experienced broker-dealers and financial advisors well knew those reported values were more probably not true reflections of the value of those investment funds, they left the clients to fend for themselves (since they’d earned their commissions).
Some clients are very likely to be surprised when they receive their account statements from the mail monthly, and that’s probably only the start.
As reported on June 21, 2019, the year-end 2018 values are reflecting considerable losses for investors, also keep in mind GPB Capital has not yet disclosed the authentic and present value of its funds for 2019. Considering that this statement comes on the heels of a slew of bad news in 2018 for GPB Capital, it’s highly unlikely the present values (when they are eventually reported) will enhance, in fact, just the opposite is likely.
GPB later announced that its auditor had resigned (and the reason given was rather disconcerting: it had been due to perceived dangers… that fell outside of the inner risk tolerance parameters). As though which were not sufficient, GPB educated public shareholders in 2018 that authorities had made an undercover replica of their GPB Capital offices in New York to collect material. Additional issues included various media outlets reporting which regulators and authorities (like the FBI, SEC, along with FINRA) had started investigations into GPB Capital. In the end, in the midst of a dispute using an insider, there were also allegations because pending litigation that contained a reference GPB Capital being a Ponzi scheme.
Why and how can so many public investors possess as much GPB? Make no mistake, GPB private placements were advertised to public investors in many cases through professional financial advisors who earned commissions as large as 8 percent in selling those investments into unsuspecting public investors. Therefore the solution is very clear oftentimes, it had been faked. It has been reported that more than 100 million in commissions from selling GPB Capital investments was compensated to broker-dealers and specialist financial advisors to incentivize their advocating these investments to public investor clients. In the process, more than $1.8 billion in funds was raised by GPB Capital in the procedure.
With up to 60 independent broker-dealer firms and tens of thousands of professional financial advisors selling GPB investments funds over the previous several decades, the net effect here is a enormous loss for public investor customers all around the nation. Well-known broker-dealer companies including Sagepoint Financial, Dawson James, FSC Securities, Advisor Group, along with Woodbury Financial have promoted and sold the GPB investments to their clientele.
GPB Capital investors might want to get in touch with a lawyer for a free, private consultation to go over some of the choices that may be accessible to some investors. Typically the broker-dealer firms earned considerable earnings selling GPB Capital to investor clients and ill or satisfactorily achieved the requisite due diligence and monitoring of their investments for the investor customers. Likewise, the professional financial advisors from the sales process made improper or untrue recommendations, were not properly supervised by both firms, and the continuing monitoring in addition to subsequent recommendations to”maintain” were negligent or improper.
Investors can call to get a free confidential consultation with an experienced investment attorney by calling 1-800-856-3352.