Securities Fraud Lawyer Blog
GPB Capital Holdings the subject of regulator complaints
FINRA, the securities industry regulator has opened an investigation into GPB Capital Holdings, a New York based investment firm that has raised nearly $2 billion from investors nationwide through a series of private placements. This is in addition to an investigation by the Securities and Exchange Commission. Adding to GPB Capital Holding’s woes, in March, 2019 the firm announced that agents from the FBI made an unannounced trip to its offices as part of their own investigation.
GPB Capital Holding’s private placements were sold by reps from dozens of broker dealers to income starved investors looking to supplement their retirement income. Often omitted in the sales pitch is that these private placements provide huge commissions to the broker, while the investor is left with a high risk, illiquid investment characterized by high fees and conflicts of interest.