Investor Alert: SEC filed charges against senior GPB executives for Ponzi Scheme fraud

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Furgison Law Group is taking cases against various financial advisors and brokerage firms that sold GPB investments

Matthew Martin Howley

The securities fraud lawyers at Furgison Law Group are currently investigating claims against various brokerage firms that sold GPB Capital Holdings’ investments. The arbitration attorneys at Furgison Law Group are investigating claims of fraud, breach of fiduciary duty, failure to supervise, misrepresentations, omissions of material facts, conflict of interests, violations of state and federal securities laws, along with other broker misconduct. The claims relate to the alleged "Ponzi" scheme operated by GPB, as described in a recent New York state Supreme Court Counterclaim, filed by Patrick Dibre against GPB. According to the Counterclaim, GPB Capital is nothing more than “a very complicated and manipulative Ponzi scheme.”

The following GPB funds are under investigation: 

  • GPB Holdings I, II and III;

  • GPB Cold Storage;

  • GPB Automotive Portfolio;

  • GPB Automotive Income;

  • GPB Waste Management;

  • GPB Holdings Qualified; and

  • GPB NYC Development.

At least 63 brokerage firms are under investigation for selling GPB:

  • Royal Alliance Associates Inc.;

  • Sagepoint Financial Inc.;

  • FSC Securities Corp.;

  • Woodbury Financial Services Inc.;

  • Newbridge Securities;

  • Ladenburg Thalmann;

  • Hightower Securitie and

  • Many others.

SEC, DOJ, and state regulators have filed charges related to GPB

According to news reports, the Securities and Exchange Commission charged senior executives at GPB Capital with fraud and running a Ponzi-like scheme that raised over $1.8 billion from 17,000 investors. The Justice Department unsealed a criminal indictment in the Eastern District of New York charging three GPB executives, David Gentile, Jeffrey Schneider and Jeffrey Lash with securities fraud, wire fraud and conspiracy.

Several states, including Alabama, New Jersey, and New York also have confirmed that they have filed parallel civil lawsuits to the SEC’s complaint.

Investors Have the Right to Recover Their Losses

When investments are sold by brokerage firms licensed by FINRA, they are subject to the laws that FINRA enforces. The brokerage firms are responsible for ensuring that their brokers are trading fairly, ethically and in the best interest of their clients. Ideally, they would accomplish this through careful supervision. Unfortunately, too often this supervision has been inadequate to fully protect investors. If you purchased any investments through a representative of a registered brokerage firm or an unlicensed salesperson and suffered losses through negligence or fraud, it immediately puts the brokerage firm at fault for failing to supervise their broker. Securities law then dictates that you can hold the firm legally liable to recover your damages.

Can I recover my investment losses?

If you lost money as a result of any GPB investments purchased through any financial advisor or broker-dealer firms, please contact us immediately. Our investment fraud lawyers have recovered millions of dollars from the largest banks, insurance companies and brokerage firms in the world on behalf of investment fraud victims. You may have certain legal rights that require your immediate attention. Time is of the essence in these claims. The sooner you act, the greater your chances of recovering your investment losses. Don't wait. Contact us TODAY for a FREE Consultation and case evaluation. We will tell you if you have a viable claim worth pursuing.