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%.
K-1 Tax Forms Would Have Disclosed The Value Of Investors’ Private Placements
This is not the first time that GPB Capital Holdings has been unable to come up with promised documents. The firm has yet to provide required statements to regulators for years. While it continues to promise investors to get their audited statements, which would allow them to find out how much their investments are still worth – if anything at all – the company continues to miss those deadlines as well.
Not only that but at least two auditing teams have resigned from working with GPB Capital. Meanwhile, all of the GPB funds have plunged significantly in value.
With this latest document delay, GPB Capital reportedly sent a letter on January 23rd to investors letting them know that it wouldn’t be able to deliver their Schedule K-1 documents before tax day. Schedule K-1 is a form that limited partnership owners are supposed to issue every year. It lets investors know how much money they’ve made or lost, as well as the value of their investments.
Investors are supposed to file their Schedule K-1 forms along with their other tax documents by April 15th. Now, they will have to request an extension. GPB said that it hopes to get investors this form by the end of July.
GPB Capital Continue To Be The Subject Of Scrutiny
GPB Capital Holdings and its funds have come under close scrutiny over the past year amidst allegations that the company was running a $1.8B Ponzi scam. Already, GPB has been the subject of much scrutiny and investment fraud claims. Not only have investigations been carried out by the SEC and FINRA, but also the FBI and other regulatory bodies.
The alternative asset firm has also been plagued with other troubles including lawsuits by former business partners and the arrest of former GPB Chief Compliance Officer, Michael Cohn. The former CCO is charged with obstruction of justice and accused of taking privileged information from his former employer, the SEC, and sharing it with GPB executives.
Our GPB investor fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) have been hard at work filing broker fraud lawsuits against the brokerage firms and broker that sold GPB private placements to thousands of investors. Unfortunately, while investors have only lost money, broker-dealers and their financial representatives earned more than $160M in commissions, including $52.5M from the GPB Automotive Portfolio.
Do You Need A GPB Investor Lawyer?
It is not too late to speak with an experienced GPB investor fraud law firm to explore your legal options. SSEK Law Firm is expecting to represent a number of GPB investors before FINRA arbitrators this year to help them fight to recover their losses, including a GPB fraud case against Arkadios Capital in April.
This is expected to be the first claim against GPB to go before the self-regulatory organization (SRO). Contact us today.