{"id":7274,"date":"2019-07-31T13:45:55","date_gmt":"2019-07-31T18:45:55","guid":{"rendered":"https:\/\/www.investorlawyers.com\/?p=7274"},"modified":"2019-08-29T14:14:11","modified_gmt":"2019-08-29T19:14:11","slug":"gpb-capital-sued-by-another-business-partner-alleging-financial-misconduct","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/gpb-capital-sued-by-another-business-partner-alleging-financial-misconduct\/","title":{"rendered":"GPB Capital Sued by Another Business Partner Alleging Financial Misconduct"},"content":{"rendered":"<p>David Rosenberg, the CEO of Prime Automotive Group and a business partner of <a href=\"https:\/\/www.investorlawyers.com\/?s=gpb+private+placement\" target=\"_blank\" rel=\"noopener noreferrer\">GPB Capital Holdings<\/a>, is suing the private placement issuer in a <a href=\"https:\/\/www.mass.gov\/orgs\/superior-court\" target=\"_blank\" rel=\"noopener noreferrer\">Massachusetts Superior Court<\/a>. According to Rosenberg\u2019s complaint, GPB Capital has been operating a Ponzi-like scam that involved using investors\u2019 funds to pay other investors and enhance its auto dealerships\u2019 performances. Rosenberg is now the second former GPB Capital business partner to allege in public filings that GPB is essentially operating a Ponzi Scheme.<\/p>\n<p>GPB Capital is a New York-based issuer of risky private placements that is invested primarily in auto dealerships and trash hauling companies. The firm has been under close scrutiny in the wake of allegations that it engaged in financial misconduct and as the value of its numerous GPB funds have dropped significantly from around $1.8 Billion down to about $1 Billion.<\/p>\n<p>The <a href=\"https:\/\/www.sec.gov\" target=\"_blank\" rel=\"noopener noreferrer\">U.S. Securities and Exchange Commission (SEC)<\/a>, the <a href=\"http:\/\/www.finra.org\" target=\"_blank\" rel=\"noopener noreferrer\">Financial Industry Regulatory Authority (FINRA)<\/a>, the <a href=\"https:\/\/www.fbi.gov\" target=\"_blank\" rel=\"noopener noreferrer\">Federal Bureau of Investigation (FBI)<\/a>, the New York City Business Integrity Commission, and the New Jersey Bureau of Securities are all investigating GPB Capital and its various funds. Additionally, <a href=\"https:\/\/www.sec.state.ma.us\" target=\"_blank\" rel=\"noopener noreferrer\">Massachusetts Secretary of the Commonwealth William Galvin<\/a> is investigating more than 60 brokerage firms whose brokers sold GPB private placements to investors. The \u201ctemporary\u201d cessation of distributions to investors, since late last year, the firm\u2019s failure over the last two years to provide financial statements, and its auditor\u2019s resignation without completing its audit last year have only served to raise questions and increase concerns.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/gpb-capital-sued-by-another-business-partner-alleging-financial-misconduct\/\"  title=\"Continue Reading GPB Capital Sued by Another Business Partner Alleging Financial Misconduct\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>David Rosenberg, the CEO of Prime Automotive Group and a business partner of GPB Capital Holdings, is suing the private placement issuer in a Massachusetts Superior Court. According to Rosenberg\u2019s complaint, GPB Capital has been operating a Ponzi-like scam that involved using investors\u2019 funds to pay other investors and enhance its auto dealerships\u2019 performances. Rosenberg [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7092,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3762,4055,3792,3772],"tags":[4066],"class_list":["post-7274","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-investigations","category-featured-investigation","category-ponzi-scams","category-private-placements","tag-gpb-private-placements"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>GPB Capital Sued by Another Business Partner Alleging Financial Misconduct &#8212; Investor Lawyers Blog &#8212; July 31, 2019<\/title>\n<meta name=\"description\" content=\"Rosenberg is now the second former GPB Capital business partner to allege in public filings that GPB is essentially operating a Ponzi Scheme.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/gpb-capital-sued-by-another-business-partner-alleging-financial-misconduct\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"GPB Capital Sued by Another Business Partner Alleging Financial Misconduct &#8212; Investor Lawyers Blog &#8212; July 31, 2019\" \/>\n<meta name=\"twitter:description\" content=\"Rosenberg is now the second former GPB Capital business partner to allege in public filings that GPB is essentially operating a Ponzi Scheme.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2019\/05\/stock-sheets-overlay.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"GPB Capital Sued by Another Business Partner Alleging Financial Misconduct &#8212; Investor Lawyers Blog &#8212; July 31, 2019","description":"Rosenberg is now the second former GPB Capital business partner to allege in public filings that GPB is essentially operating a Ponzi Scheme.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/gpb-capital-sued-by-another-business-partner-alleging-financial-misconduct\/","twitter_card":"summary_large_image","twitter_title":"GPB Capital Sued by Another Business Partner Alleging Financial Misconduct &#8212; Investor Lawyers Blog &#8212; July 31, 2019","twitter_description":"Rosenberg is now the second former GPB Capital business partner to allege in public filings that GPB is essentially operating a Ponzi Scheme.","twitter_image":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2019\/05\/stock-sheets-overlay.jpg","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/gpb-capital-sued-by-another-business-partner-alleging-financial-misconduct\/","url":"https:\/\/www.investorlawyers.com\/blog\/gpb-capital-sued-by-another-business-partner-alleging-financial-misconduct\/","name":"GPB Capital Sued by Another Business Partner Alleging Financial Misconduct &#8212; Investor Lawyers Blog &#8212; July 31, 2019","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/gpb-capital-sued-by-another-business-partner-alleging-financial-misconduct\/#primaryimage"},"image":{"@id":"https:\/\/www.investorlawyers.com\/blog\/gpb-capital-sued-by-another-business-partner-alleging-financial-misconduct\/#primaryimage"},"thumbnailUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2019\/05\/stock-sheets-overlay.jpg","datePublished":"2019-07-31T18:45:55+00:00","dateModified":"2019-08-29T19:14:11+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Rosenberg is now the second former GPB Capital business partner to allege in public filings that GPB is essentially operating a Ponzi Scheme.","breadcrumb":{"@id":"https:\/\/www.investorlawyers.com\/blog\/gpb-capital-sued-by-another-business-partner-alleging-financial-misconduct\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.investorlawyers.com\/blog\/gpb-capital-sued-by-another-business-partner-alleging-financial-misconduct\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.investorlawyers.com\/blog\/gpb-capital-sued-by-another-business-partner-alleging-financial-misconduct\/#primaryimage","url":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2019\/05\/stock-sheets-overlay.jpg","contentUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2019\/05\/stock-sheets-overlay.jpg","width":640,"height":428,"caption":""},{"@type":"BreadcrumbList","@id":"https:\/\/www.investorlawyers.com\/blog\/gpb-capital-sued-by-another-business-partner-alleging-financial-misconduct\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.investorlawyers.com\/blog\/"},{"@type":"ListItem","position":2,"name":"GPB Capital Sued by Another Business Partner Alleging Financial Misconduct"}]},{"@type":"WebSite","@id":"https:\/\/www.investorlawyers.com\/blog\/#website","url":"https:\/\/www.investorlawyers.com\/blog\/","name":"Investor Lawyers Blog","description":"Published By Investment Fraud Attorneys \u2014 Shepherd Smith Edwards &amp; Kantas, LLP","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.investorlawyers.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431","name":"Shepherd Smith Edwards &amp; Kantas, LLP","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","caption":"Shepherd Smith Edwards &amp; Kantas, LLP"},"sameAs":["https:\/\/www.investorlawyers.com\/"]}]}},"jetpack_featured_media_url":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2019\/05\/stock-sheets-overlay.jpg","jetpack_shortlink":"https:\/\/wp.me\/pedX9K-1Tk","_links":{"self":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/7274","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/comments?post=7274"}],"version-history":[{"count":1,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/7274\/revisions"}],"predecessor-version":[{"id":18218,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/7274\/revisions\/18218"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/media\/7092"}],"wp:attachment":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/media?parent=7274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/categories?post=7274"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/tags?post=7274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}