GPB Capital

Despite $1.8B Ponzi Scam Allegations, GPB Capital Received Up to $7M in PPP Loans

Published on: July 13, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Alternative Asset Firm Gets Federal Aid While Its Investors Fight To Recover Their Losses

Even as the US Securities Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the FBI, state regulators and others have continued to investigate GPB Capital Holdings over allegations that it ran an up to $1.8B Ponzi scam, the alternative asset firm and its affiliated companies were able to secure between $3M and $7M in Paycheck Protection Program (PPP) loans following the outbreak of COVID-19.

News of the loans was disclosed by the Small Business Administration. GPB is one of over 660,000 small businesses that received loans under the PPP program, which is part of the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Once Again, GPB Capital Holdings Reneges On Giving Key Tax Documents to Investors

Published on: July 9, 2020 | by Shepherd Smith Edwards & Kantas, LLP

K-1 Tax Documents Delayed Past Tax Deadline

In the latest GPB Capital news, the firm has notified investors of its GP Holdings II, LP fund that they won’t be getting their 2019 Schedule K-1 tax documents ahead of or by July 15, 2020, which is when US tax filings are due this year. The filing deadline was extended by the Internal Revenue Service (IRS) from its usual April 15 date as part of the US government’s COVID-19 relief.

This is the latest delay by the alternative asset firm, which has yet to provide key financial statements to investors and regulators for the past few years and is accused of operating a more than $1.5 B Ponzi scam.

Elderly Retiree Claims Sheppard Mosher advisor Jason Mosher Overconcentrated His IRA With GPB Private Placements

Published on: June 11, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Investor Sues Kalos Capital Over GPB Capital Losses

A widower retiree in his eighties is suing Kalos Capital for losses he suffered in GPB Capital Holdings’ private placements and other risky investments that were recommended to him by Kalos broker, Jason Mosher.

The claimant contends that Mosher, who operates his business under the name Sheppard Mosher but is an employee of Kalos, overconcentrated his IRA in GPB investments and other risky securities including private Real Estate Investment Trusts (REITs) and privately traded securities. Now, this elderly investor is seeking up to $500K in damages.

Massachusetts Sues GPB Capital Holdings for Defrauding Investors of Over $14M

Published on: June 2, 2020 | by Shepherd Smith Edwards & Kantas, LLP

State Securities Regulator Claims GPB Capital Defrauded 180 Local Investors

Massachusetts Secretary of the Commonwealth, William Galvin, has filed a civil fraud lawsuit against GPB Capital Holdings accusing it of defrauding 180 local investors who purchased more than $14M of private placements in five of the GPB funds.

The alternative asset firm, which acquires waste management operations and auto dealerships, has been accused of operating a more than $1.5B Ponzi scam.

Trial of EX-GPB Capital Holdings CCO Michael Cohn is Delayed Over COVID-19 Concerns

Published on: May 6, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Cohn, Also A Former SEC Examiner, Is Charged With Obstruction

The criminal trial of Michael Cohn, the ex-GPB Capital Holdings chief compliance officer, has been postponed after he expressed concern that his pre-existing health conditions placed him at a higher risk of contracting the coronavirus (COVID-19).

Cohn is charged by federal prosecutors with obstruction of justice. The US government alleges that he took information about US Securities and Exchange Commission (SEC)’s investigation into the alternative asset firm, while he was still an SEC examiner, and shared it with GPB executives.

Jack Jones and Mark Robare of Robare & Jones Wealth Management are the Subjects of a FINRA Complaint Involving GPB Investments and Other Privately Traded Investments

Published on: March 17, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Triad Advisors Sued Over GPB Private Placement Sales

In our latest GPB investor fraud claim against a brokerage firm, Shepherd Smith Edwards and Kantas, (SSEK Law Firm) is seeking up to $500K from Triad Advisors on behalf of a retired Texas couple. The claimants, who are in their seventies, entrusted a significant chunk of their savings to Triad brokers Jack Jones and Mark Robare, whom they are accusing of overconcentrating their money in GPB private placements and other unsuitable investments. The couple contend that they lost half a million dollars as a result.

GPB Capital Holdings, an alternative asset firm that issued the private placements, is accused of operating a $1.5B Ponzi scam. Now, the 60 brokerage firms whose registered financial representatives sold these investments are finding themselves the subject of broker fraud claims from investors seeking to recover their money.

Christopher Shaw, Founder and President of CJS Wealth Management, is the Subject of a FINRA Complaint Involving GPB Capital Recommendations

Published on: March 3, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Elderly Investor Claims $250K in GPB Fraud Losses

In yet another GPB private placement fraud case, our broker fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm) have filed a claim on behalf of an investor.

This time, the respondents are Pruco Securities and Kalos Capital, which the firm has gone after in previous private placements claims over the same investments and broker, Christopher Shaw. The claimant, who is an elderly woman from North Carolina is reporting over $250K in losses. She is seeking up to $500K in damages plus interests and other costs.

GPB Capital Sued Again: A Class Action Fraud Case and One Lawsuit by Volkswagen

Published on: February 24, 2020 | by Shepherd Smith Edwards & Kantas, LLP

GPB Capital Holdings Faces Another Securities Fraud Lawsuit

Already the subject of mass fraud accusations, including allegations of a $1.8B Ponzi scam, the alternative assets firm is once again the defendant of two new lawsuits.

Adding to a growing list of GPB Capital lawsuits is another class action securities fraud case. The other, brought by Volkswagen of America, is accusing GPB Capital of breaking its agreement when it fired Prime Automotive Group CEO, David Rosenberg, last year.

Shepherd Smith Edwards & Kantas Files GPB Capital Private Placement Fraud Case Against International Assets Advisory

Published on: February 20, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Texas-Based Broker Sold GPB Private Placements To Retiree Couple

Once again, Shepherd Smith Edwards and Kantas (SSEK Law Firm) has filed an investor fraud claim against a broker-dealer after its financial advisor sold investments in GPB Capital Holding’s funds to customers.

This time, the brokerage firm is International Assets Advisory (IAA), LLC and the broker involved is Williams Keen Butcher who is based in Houston.

GPB Capital Won’t Be Providing Key Tax Documents to Over 6,500 Investors By April 15

Published on: February 11, 2020 | by Shepherd Smith Edwards & Kantas, LLP

GPB Capital Notifies Automotive Portfolio Investors About Schedule K-1 Delay

Beleaguered alternative asset firm, GPB Capital Holdings, has notified investors of its GPB Automotive Portfolio fund that it won’t be delivering key tax documents to them in time for this year’s April 15th tax deadline.

The GPB Automotive Portfolio is one of the company’s largest funds, having raised $622.1M alone for more than 6,500 investors. Many of whom have suffered huge losses after the fund’s private placements dropped in value by 39%.