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GPB Capital Lawsuit: Is GPB Holdings a Ponzi Scheme?

Were you advised to invest in GPB Capital Holdings? If so, you may be entitled to full repayment of your investment through the GPB Capital Lawsuit. Contact a respected investment loss lawyer for more information.

Individual stock brokers and brokerage firms across the country have previously suggested that their clients invest in GPB Capital Holdings and GPB’s individual limited partnerships. 

However, it was later discovered that these holdings companies were simply part of a massive, $1.8-billion Ponzi scheme that operated by partnering with independent brokers and brokerage firms to sell private partnerships in these holdings to wealthy investors. 

If you were promised considerable, single-digit returns in exchange for entering into one of these private partnerships, you can do something about it. The highly experienced investment loss attorneys at Wolper Law Firm are prepared to help you with your GPB Capital Lawsuit so you can get your money back before it’s too late. 

GPB’s Ponzi Scheme

A Ponzi scheme occurs when an investor doesn’t receive returns from generated income, but rather from the investment money of other investors. This is exactly what GPB Capital Holdings has been doing. 

Rather than generating an 8 percent return to investors, as promised when the investor purchased private partnerships, the company would instead issue returns that were equal to or less than the investor’s capital, usually with their own investment or that of other, new investors. 

Not only were these private partnership returns being paid with the investment of newly recruited investors, but GPB holdings failed to deliver the promised single-digit return. 

Many investors suffered considerable losses as a result of this Ponzi scheme. Because GPB’s family funds have declined between 40 and 70 percent over the last few months, investors are left not knowing what GPB funds are worth. This means investors are unable to determine what their GPB private partnership investments are worth.

Affected Private Placement Investments

Approximately 60 broker-dealers across the U.S. sold funds totaling nearly $1.8 billion in investments marketed as private equity opportunities to investors. 

With that being said, there are several individual limited partnerships that may be the cause of your investment losses. Some of these include:

  • GPB Scientific, LLC
  • GPB Cold Storage, LP
  • GPB Automotive Portfolio, LP
  • GPB NYC Development
  • GPB Holdings II, LP
  • GPB Holdings, III, LP
  • GPB Holdings, LP
  • GPB Holdings Qualified, LP
  • GPB Eurobond Finance PLC 
  • GPB Waste Management, LP previously known as: GPB Waste Management Fund, LP

If you have invested in any of these previously mentioned private placement investments, and are interested in learning more about how to ensure you are able to hold GPB Capital Holdings and the broker-dealers who defrauded you accountable for their misconduct, reach out to a qualified investment loss lawyer.

The Class Action Lawsuit

In October 2019, a class action lawsuit against GPB was filed in the U.S. District Court for the Western District of Texas. Plaintiffs in this case allege that GPB was, in fact, operating a Ponzi scheme. 

These scams always fail, and cost investors substantial losses. But GPB tried to mask the scheme, and it’s inevitable failure, by telling investors they would receive continuous returns amounting to 8 percent of their initial investment, annually, through “healthy cash flows” and generated income from the private partnerships. 

When investors failed to see such returns, GPB argued that the returns being distributed were based on the performance of the partnership. Instead, as much as 95 percent of the returns investors saw were that of their own capital, without the promised 8 percent return. 

As with all Ponzi schemes, these returns were often covered not by the “healthy cash flow” of the private partnership, but instead by the initial investments of new investors. 

Other GPB Investigations 

In addition to the class action lawsuit filed against GPB Capital Holdings, and the numerous arbitration complaints against affiliated broker-dealers, GPB is also under investigation by several other entities, including the Federal Bureau of Investigation (FBI), the U.S. Securities and Exchange Commission (SEC), the Massachusetts Secretary of the Commonwealth, the Financial Industry Regulatory Authority (FINRA) and the Department of Justice. 

In fact, in October 2019, the Department of Justice charged GPB’s chief compliance officer, a former SEC examiner, with obstruction of justice in relation to an SEC investigation into GPB Capital Holdings. 

These investigations have made headlines since September 2018, and with thousands of other wronged investors across the U.S. waiting to see what happens with GPB and their returns, it’s only a matter of time before GPB Capital Holdings and their broker-dealers be held accountable for their misconduct. 

Victimized by GPB? How to Recover Your Losses

Investors recognize and accept the risks that come with investing. But, when a broker-dealer or company is engaging in fraud, such as the alleged Ponzi scheme operated by David Gentile, Jeffrey Schneider, and other operating partners, you may be able to claim financial restitution. 

Remember, brokerage firms that sold GPB do not have unlimited resources at their disposal, and insurance only covers the limits of their policy. Your opportunity to recover your investment and losses is limited. You can take action against the broker-dealers who have wronged you by initiating FINRA arbitration complaints against them for full recovery of your losses. 

You may also be able to enter into the Class Action lawsuit against GPB to maximize your financial restitution. Contact our office to learn more about your legal options. 

Get in Touch with a Reputable Investment Loss Attorney

If you invested in a private partnership with a GPB Capital Holdings company and are interested in learning more about your next steps toward a GPB Capital lawsuit, reach out to a qualified investment loss lawyer at Wolper Law Firm for assistance. 

You can schedule a no-cost case evaluation by calling us at 800-931-8452 or completing the online contact form at the bottom of this page. 

Now is the time to talk to an investment loss recovery lawyer. We can help recover your investment loss. Free consultations, always.

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