Did you invest with Darren Oglesby (Monroe, LA) and/or Money Concepts Capital Corp. and suffer losses in GPB Capital or other private placement transactions? If so, we may be able to help you recover your losses.
Shepherd, Smith, Edwards & Kantas, a national law firm dedicated to representing wronged investors, is investigating claims on behalf of current and former clients of Darren Oglesby and/or Money Concepts Capital Corp. who were sold GPB Capital and other private placements, such as non-traded real estate investment trusts (“REITs”). Private placements, such as GPB Capital, are often marketed to investors as safe ways to obtain a higher return. In truth, these investments are high-risk securities and typically illiquid and impossible to accurately price.
GPB Capital is a good example of what can go wrong with such private placements and why they are supposed to only be sold to very sophisticated investors willing to take high risks. For GPB Capital, the company raised a reported $1.8 billion from investors nationwide. Nevertheless, it has been more than a year since the company failed to make required SEC reports. Since then, financial information has been consistently delayed, the company’s auditor quit, several regulators have opened investigations into GPB Capital, the FBI raided the company’s offices in New York, a former business partner accused the company of being a “Ponzi scheme” and a current business partner has publicly reported accounting irregularities.
In June of this year, GPB Capital finally admitted that all of its funds have lost substantial value, with the average fund having a 40% loss. In total. There appear to be close to $800,000 in “reported” losses, with more information allegedly to come at the end of September.
GPB is just one example of what can go wrong when investors are wrongfully placed in private placements that have not been appropriately vetted. Brokers who sell these investments typically are paid much higher commissions than other investments, and are therefore incentivized not to ask the necessary questions to determine if the company is valid and has a reasonable business plan. Moreover, since that commission is paid at the beginning of the relationship, there is often no follow-up to make sure the investment remains a going concern.
If you invested in GPB Capital or any other private placement investment with Darren Oglesby and/or Money Concepts Capital Corp, please contact our investment loss lawyers for a free, confidential and no-obligation consultation to discuss your legal options for recovering your losses. Our toll-free number is 1-800-259-9010.
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