Given the inherently complex and deceptive structure of GPB Capital Holdings, we must ask if the $239 million RAUM represents only Regulatory Assets Under Management as opposed to a larger amount GPB Capital Holdings deems to fall outside of public reporting requirements. 1. Finally, there are practical considerations as well in cases where investors are aware of losses and potential claims, but they choose to delay taking action. The firms main owners and control persons include Gentile and Schneider. Due diligence includes an initial investigation into the GPB investment: and that includes potential benefits, risks, and tax consequences, as well as a review and investigation of GPB itself, the underlying business, the history of the company or business as well as key individuals, and other relevant factors, including any actual or potential conflicts of interest. The initial charges against him had been classified as federal crimes and included obstruction of justice, unauthorized disclosure of confidential information, and unauthorized computer access.

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Left unexplained in the Form ADV is how Health Prime, a GPB Capital portfolio company, is now owned by Mike Frosts Austin Lake Technologies. Given the above statement, we must ask if the $239 million RAUM is a meaningful number at all. Unfortunately, there are legal loopholes that a bad actor can do. 4B. 21st century robber barons! We have substantial experience pursuing claims against brokerage firms and financial advisors on behalf of investors nationwide. Professional firms do not engage in this type of activity. A large number of them have filed lawsuits (FINRA) to recover losses. GPB Waste Management, and GPB Cold Storage, and raised and invested capital in a portfolio of private . Given the Gentile-Schneider undisclosed and bad faith architecture of paying excessively high commissions, paying themselves excessive fees at every step of the way, and failing to disclose their self-dealing and numerous conflicts of interests, we think there is a case to be made that GPB Capital was inherently fraudulent from the beginning. Date of Report (Date of earliest event reported): June 30, 2022. This is because investments like GPB are very risky. They would be entitled to some recovery out of the rubble left, on an equal basis with people who didnt get distributions, but thats obviously going to be a lot less than whats clawed back. Armada Waste Management: 2Q 2019 Fair Market Value is $33.3 million, or 20.5% of the Net Capital Contributions, a decline from 4Q 2018 Fair Market Value of $53.4 million, or 32.7% of the Net Capital Contributions. The Plaintiffs, in this case, alleged that GPB Capital Holdings was operating a Ponzi scheme. }}
If convicted, the defendants each face up to 20 years imprisonment. That is a 45.2% plunge. First, be aware that an investor has a limited time window to recover losses. Jeffry Schneiders Ascendant Capital website has been disabled and is non-operational at this writing. This lack of financial transparency is part and parcel of the undisclosed and excessive fees, the high commissions to B-Ds, and all of the other dishonest intentions, tactics, and practices of GPB Capital Holdings. On the other hand, GPB has created a convenient Catch-22 for itself when it declared, GPB policy requires the use of a valuation provider to support its Valuation Committee in determining appropriate valuation and assets under management. This policy requirement, along with GPBs inability to do something as simple as hiring a third-party Valuation Service Provider during 2019, allows GPB to refrain from stating a real value of its holdings. The company had been tasked with auditing one of the GPB private placement funds, Armada Waste Management. Just last February, GBP Capital Holdings and three individuals were charged by the Securities Exchange Commission (SEC) with fraud and running a $1.6 billion Ponzi scheme. , Highline Management Inc., which was set up earlier this year, is now overseeing the firms business affairs. If you invested in any of the following funds. However, in GPBs 2018 Part 2A ADV a/k/a The Brochure the company states (emphasis ours): GPB Capital Holdings, LLC, a Delaware limited liability company (GPB or the Manager), is a New York-based middle-market acquisition and operations firm whose principals are experienced financial, management and accounting professionals with several decades of combined private investment and acquisitions experience. GPB Capital provides their portfolio companies with the strategic planning, managerial insight and capital needed to enable strong businesses to work towards the next level of growth and profitability. According to InvestmentNews, Highline Management Inc., which was set up earlier this year, is now overseeing the firms business affairs. With todays guilty plea, Modile is revealed as a prolific fraudster and money launderer who has left a trail of fake documents, plundered bank accounts, and financial victims from Brooklyn A three-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Mohammad Ibrahim Bazzi, a Lebanese and Belgian citizen, and Talal Chahine As alleged, Carlos Watson is a con man whose business strategy was based on outright deceit and fraud he ran Ozy as a criminal organization rather than as a Eastern District of New York Highline Management, Inc., which . Financial advisors and brokers have legal and regulatory responsibilities to adhere to the rules and regulations of the securities industry.. Ponzi schemes have been around for a long time, and one of the most recent Ponzi schemes was by Bernie Madoff from New York, who stole over $17 billion. For better and worse, the car guys seem to have a great deal of influence at GPB: Patrick Dibres lawsuit: Read GPBs claim and Dibres counterclaim. Petersburg, and Washington, D.C. Has your financial advisor contacted you to review the investment holdings and discuss the status after this additionally reported decrease in value (as reported by the sponsor) or to share with you that the National Financial Services and other custodian providers are removing GPB Funds from their platform? Recover your GPB Holdings losses by calling us 1 800 856 3352 for a free consultation. The structural complexities of GPB Capital Holdings; its funds and sub-funds; and hundreds of bank accounts will be unraveled in due course by regulators and, hopefully, prosecutors. Scroll down to see GPB Capital Holdings ADV and Brochure Part 2 of August 12, 2020. NEW YORK, Nov. 18, 2021 /PRNewswire/ -- GPB Capital Holdings, LLC ("GPB Capital") has finalized the sale of Prime Automotive Group to Group 1 Automotive, Inc. ("Group 1"), an international, Fortune 500 automotive retailer with 217 dealerships located in the U.S., U.K., and Brazil.This closing completes the purchase of substantially all the assets, including real estate, of 27 Prime Automotive . The Financial Industry Regulatory Authority Inc. (FINRA) opened an investigation. The current unrealized loss is $92,725,188.00. Mr. DuCharme expressed his grateful appreciation to the Securities and Exchange Commission, New York Regional Office, for their significant cooperation and assistance during the investigation, and thanked the Business Integrity Commission and the New York City Police Department and for their support during the investigation. Industries Financial Services Company size 11-50 employees Headquarters New York, NY Type Privately Held Founded 2020 Locations. Lock In certain places, GPBs Brochure reads like a no contest document in a plea bargain agreement. Page 1 of 1 Specifically, Gentile and Schneider, both individually and through employees at Ascendant, represented to investors in Holdings I, Holdings II and Automotive Portfolio that the GPB funds would make a monthly distribution payment to investors that would be fully covered by funds from operations, meaning that the companies purchased by the funds would be sufficiently profitable for the monthly payments to be made from the companies cash flow, without drawing from capital raised by investors. We have over 50 years of experience and a 95% success rate. Readers can scroll down to the bottom of this article to read the Managed Funds Associations short precis on understanding RAUM. The company had been tasked with auditing one of the GPB private placement funds, Armada Waste Management.

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GPB Scientific LLC, and GPB Waste Management LP formerly: GPB Waste Management Fund LP.

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Rosenberg sued GPB and the parties are now locked in an acrimonious lawsuit. Secure .gov websites use HTTPS We serve the following localities: Atlanta, Baltimore, Boston, Michael Cohn Allegedly Stole Information About SEC Probe Into GPB Ponzi Scam Allegations, GPB Capital Holdings Continues to Leave Investors Wondering What Happened to Their Money, In July, the alternative asset firm reported in its Form ADV to the SEC that its assets under management (AUM) had. Appropriate due diligence would further identify issues that concern investors (compared to other potential investments), including high costs, high commissions, illiquidity, and conflicts of interests that would make the investment not suitable for retail investors or certain classes of retail investors such as retirees, elderly investors, etc if the investments are long-term and illiquid in nature, that more than likely would not suit the investment objectives, needs, or goals of an elderly or retired investor in many cases. Highline, which manages the day-to-day operations of GPB Capital's sponsored partnerships, negotiated the sale with BPOC. The four-month program will help eight fintech startups refine and scale products designed to improve the financial . Were the representations fair and balanced in terms of risk disclosures? An official website of the United States government. KUHN GMD2850TL Online Auctions at EquipmentFacts.com. See: Toni Caiazzo Neff v. PKS Holdings, LLC et al E.D. Of course, Cohns demand for a bench trial also seems to be an attempt to line up something for an appeal. Scientology Fines OTs $100,000 if They Talk About Xenu or Body Thetans! As an investor, you may want to begin by reviewing the basic information and records that you have in your files, including your emails, correspondence, account statements, and signed agreements, or other written materials. But who are the officers? In September 2018, a former compliance officer at one of the 63 broker-dealer firms selling GPB investment funds to public investors filed a federal lawsuit alleging that her broker-dealer (Purshe Kaplan Sterling Investments) sold GPB holdings investments despite serious red flags.

{ "@type": "Question", "name": "What Should GPB Capital Investors Do? Hiding behind the skirts of their high-priced attorneys just as they did in the 19th and 20th centuries. %%EOF This has serious implications. Whether or not the funds are even currently worth the value reported by the company as the sponsor remains to be seen and has not been verified as of yet by any outside auditor firms. Welcome to ComplianceWeek.com. This site uses Akismet to reduce spam. Highline Management, Inc., which manages the day-to-day operations of GPB Capital's sponsored partnerships, negotiated the sale with Group 1. Jeffrey Schneider, GPBs placement agent Ascendant Capital, David Gentile, and Jeffrey Lash, both executives of GPB, have been charged with wire fraud, securities fraud, and conspiracy against 17,000 investors. See our recent article on this puzzling development. Kirkland & Ellis, LLP served as legal advisor and Houlihan Lokey Capital, Inc. served as financial advisor, respectively, to BPOC in connection with the transaction. Highline Management Inc., which manages the day-to-day operations of GPB Capital's sponsored partnerships, negotiated the . The popular GPB holdings investments were the GPB Automotive Portfolio, GPB Holdings ii, and GPB Waste Management. ) or https:// means youve safely connected to the .gov website. Read our policy. That is a 45.2% plunge. See auction date, current bid, equipment specs, and seller information for each lot. Of course, we pause to note that GPB Capital Holdings still owes investors and the SEC those 2015 and 2016 restated financial reports. Specifically, GPB admits in this latest ADV that its June 2020 RAUM is based upon June 2019 values: Regarding the Advisors answer to Item 5(F)2, the values reflected for the regulatory assets under management are as of June 31, 2019. The narrative prosecutors can present about Cohn would be damning in front of a jury. Notably missing from the list of GPB executives is Evan Myrianthopoulos, the long-time head of Debt Strategies at the firm. 3. Fair Game: Leah Remini & Mike Rinders Podcast, The Aftermath Foundation: Help for Those Who Want to Leave the Sea Org, Scientologys Membership Contract Goes Down in Flames in Court, Chris Shelton's Sensibly Speaking Podcast, Dr. Steven Hassan's Freedom of Mind Resource Center, Stefani Hutchison's Confront & Shatter Blog, The Aftermath Foundation: Helping Those Who Have Left the Sea Org, We reported on GPB Capital Holdings staggering $700 million loss, International Association of Scientologists, THE WhistleBlowers | THE DNA OF SCIENTOLOGY Lying, Greed & Fair Game, Scientologist David Gentile Arrested by the FBI on Charges Related to His $1.8 Billion GPB Capital Holdings Ponzi Scheme The Scientology Money Project, THE WhistleBlowers | SCIENTOLOGIST DAVID GENTILE, Jeffry Schneider (the owner + CEO of Ascendant Capital LLC) + Jeffrey Lash (a former managing partner of GPB) ARRESTED BY FBI ON CHARGES Related to His $1.8B GPB Capital Holdings Ponzi Scheme that cheat, Wall Street Journal: GPB Capital to Sell Its Flagship Prime Automotive Group The Scientology Money Project, Church of Scientology International(158), Proof that L. Ron Hubbard Did Not Create Scientology: The Prelude Part 1. Scientology Does! Assistant United States Attorneys Lauren Howard Elbert, Artie McConnell and Garen Marshall are in charge of the prosecution.

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Our securities fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) have spent nearly two years investigating GPB Capital over allegations that it ran a $1.8B Ponzi scam. The business address is 33 E 33rd St Rm 807, New York, NY 10016. This comes after the change of the CEO, an additional lawsuit by the former CEO, and the arrest of GPBs Compliance officer for obstruction of justice. According to its report, since the appointment of the monitor in February 2021, the two main areas of focus have included: (1) Financial Reporting and (2) GPB Investments. Investors that are worried about investing in a Ponzi scheme should consult a third-party investment lawyer.

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Learn how your comment data is processed. We have no idea what GPBs most recent RAUM number actually means. GPB Capital's business model is to raise money from investors through sales of high-commission products at dozens of independent broker-dealers and use that capital to buy businesses like. Intuit Inc. (NASDAQ: INTU), the global financial technology platform that makes TurboTax, Credit Karma, QuickBooks, and Mailchimp, along with Highline Beta, a venture studio and venture capital firm, announced today the 2023 cohort of the Intuit Prosperity Accelerator: Toronto.. Nearly a year after he was charged with obstruction of justice, Michael Cohn, the former Chief Compliance Officer of GPB Capital Holdings, has pleaded guilty to the misdemeanor crime of theft of government property. Moreover, the property on which many dealerships sit is owned by separate companies under the GPB Capital umbrella. Also in July, investors of the GPB Capital Holdings II were told that they would not be getting the key documents they needed to submit with this years tax filingsa deadline that was already postponed by three months due to COVID-19. There may also be issues as to whether due diligence files were properly updated as material issues, including those noted above, were made public or could have been discoverable by the firms. For those investors relying upon a financial advisor that owed a fiduciary duty, the applicable standard is higher, as they are required to put the clients interests ahead of their own at all times. The company is a New York based alternative asset management firm that is believed to have raised 1.8 billion dollars in capital for several funds. In other words, investors were saying that GPB Holdings was paying investors with new investors funds, thus the definition of a Ponzi scheme. A Ponzi scheme is where people are promised a return and paid money from other investors. Many of the investments were private placements. A more recent docket listing may be available from PACER . Highline Management 2020-2021 Managing Partner GPB Capital 2014-2020 President Cvl Advisors Group 2001-2012 Chief Financial Officer & Director, Board Soligenix 2001-2012 Education B. S. - Economics and Psychology Emory University Board Memberships & Affiliations Senior Vice President & Chief Financial Officer DOR BioPharma 2001-2017