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Articles Posted in GPB Capital

Former Vancouver, Washington Financial Adviser Has 21 Disclosures On Record 

Jeffrey Raymond Dixson, an ex-Madison Avenue Securities investment advisor and stockbroker, is the subject of at least 10 Financial Industry Regulatory Authority (FINRA) arbitration claims in which the customers are seeking damages for their GPB private placement losses. 

The investments were issued by GPB Capital Holdings, which is now accused of running an over $1.8B Ponzi scam that defrauded more than 17,000 investors. Madison Avenue Securities is one of many broker-dealers that earned over $160M in commissions from selling GPB alternative investments. 

GPB Capital’s Auto Group has released more bad news about the financial condition of the company and the likelihood that it can continue as a substantial concern.  Specifically, the New York-based private equity firm, GPB Capital Holdings, LLC produced recent filings with the Securities and Exchange Commission which included additional financial information. 

The parent company is already facing multiple civil fraud charges for their Ponzi scheme and the recent ability to maintain business as usual does not come as a shock to our experienced attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm). 

SEC Filing Reveals Uncertain Future Ahead for GPB Auto Group

Former Texas Stockbroker Founded Nest Financial in Austin

Our GPB private placement lawyers are investigating investment losses suffered by former customers of ex-SagePoint Financial registered representative, Daniel G. Dillard. Although he is no longer a registered broker, Dillard remains a registered investment advisor and the founder of Nest Financial in Austin.

He is currently named in two pending customer disputes, including one Financial Industry Regulatory Authority (FINRA) arbitration case over private placements in which the claimants are seeking $1.5M in damages.

Boutique Broker-Dealer Pays Another 7-Figures to Resolve Customer Disputes 

Independent brokerage firm Purshe Kaplan Sterling Investments, Inc. has agreed to settle another Financial Industry Regulatory Authority (FINRA) arbitration claim with investors.  This time, 50 customers had pursued financial recovery from the firm. 

According to the broker-dealer’s yearly audited financial statement that it recently submitted with the Securities and Exchange Commission (SEC), the settlement amount is $1.6M. Wentworth Management Services, which owns the firm, will pay $1.2M while its insurer will cover the rest.

Brokerage-Dealer Accused of Unsuitable Investment Recommendation In Three GPB Funds

Geneos Wealth Management, a Denver, Colorado-based brokerage firm, is accused of inappropriately recommending that a customer invest in three GPB Capital funds: The GPB Holdings II LP, the GPB Automotive Portfolio, and GPB Waste Management. The investment fraud claim contends that the broker-dealer invited GPB Capital Holdings employees to give a presentation in order to get investors on board.

GPB Capital Holdings, a New York-based alternative assets firm, is now accused of operating a more than $1.8 billion Ponzi scam that enriched not just the company’s executives but also the dozens of brokerage firms and their registered representatives. These firms failed to carry out the proper due diligence when they unsuitably recommended and sold GPB private placements to customers. 

Customers of Sagepoint Financial, Royal Alliance Associates, and FSC Securities Have Suffered Losses in the GPB Funds 

According to InvestmentNews, three Advisor Group brokerage firms raised their reserves for expected “legal and regulatory matters” by up to three times last year. The firms disclosed this information in their 2020 Focus Reports, which are financial statements that they recently submitted with the US Securities and Exchange Commission (SEC). 

Although the broker-dealers did not explain what they needed these added legal reserves for, they are among the dozens of financial firms that collectively earned over $160M in commissions from selling GPB private placements to investors. 

SEC Requested Monitor to Protect GPB Fund Investors 

In a letter dated March 3rd, 2021, to all investors of its limited partnerships, CFO and interim CEO of GPB Capital Holdings, Rob Chmiel, notified investors that the firm has consented to a court-appointed independent monitor by the SEC to run the company and oversee its assets.

The regulator said it wanted to protect GPB Fund investors from further financial harm in the wake of the Ponzi fraud charges. 

States Allege Self-Dealing: Key GPB Capital Parties Used Investors’ Money to Fund Luxury Expenses 

In separate lawsuits suing GPB Capital Holdings and other key parties for defrauding investors in a more than $1.8B Ponzi scam,  Missouri and Illinois regulators are accusing former GPB Capital Holdings CEO, David Gentile, and Ascendant Capital owner, Jeffry Schneider, of illicitly collecting over $40M from the alternative asset firm’s operations. 

The two men, along with ex-GPB Managing Partner, Jeffrey Lash, were recently arrested in a related federal criminal case that was brought parallel to the US Securities and Exchange Commission (SEC)’s own civil lawsuit. GPB Capital Holdings is an alternative asset firm that is accused of operating like a Ponzi scam that defrauded over 17,000 investors. 

Regulator Wants to Prevent Alternative Asset Firm From Causing Investors More Financial Harm

In U.S. District Court for the Eastern District of New York in Brooklyn, the Securities and Exchange Commission (SEC) has submitted a court filing asking that a monitor be appointed to prevent GPB Capital Holdings, LLC from committing more alleged misconduct and disposing of any assets that could be used to recover investors’ money. The regulator is suing the alternative asset firm for allegedly defrauding more than 17,000 investors in an over $1.7B Ponzi scam.

The SEC contends that having a monitor is warranted and needed. The Commission wants to give this person broad powers over “non-privileged books, records, and account statements for the entities and assets” related to GPB Capital Holdings’ portfolio companies and funds. 

State Lawsuits Come After SEC Complaint and FBI Arrests

New York Attorney General Letitia James is suing GPB Capital Holdings along with five co-defendants for running a mass Ponzi scam.

The NY AG contends that the alternative asset firm and private equity fund manager, which is based in the state, defrauded investors throughout the US of over $700M. The complaint said that more than 1,400 of those victims were New Yorkers who invested over $150M.

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