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GPB Capital Sued for Alleged Serious Financial Misconduct

Prime Automotive Group executive David Rosenberg filed a lawsuit against GPB Capital Holdings alleging the firm engaged in "serious financial misconduct" and attempted to cover it up so that investors would believe their investments were safe and that losses were due to "legitimate business events rather than their own misconduct," when, instead, GPB was purportedly engaged in more nefarious dealings.

InvestmentNews reports that GPB Capital stands accused of running a Ponzi-like scheme, while Rosenberg also alleges that when he attempted to report evidence of financial misconduct within GPB Capital, including an eventual communication with the SEC, GPB leadership "took retaliatory action by failing to make a contractually required payment to him."

In June's "Profits Before People - GPB Capital Paid High Commissions to Sell Troubled Products," we referenced a report finding that GPB Capital clients paid more than 9% commissions on about $1.8 billion of risky products, which in turn lost money.

We also noted that the FBI is actively investigating GPB Capital Holdings and its private placement business of alternative investments, which InvestmentNews previously described as high-risk and illiquid.

In 2018, auto dealer Patrick DiBre alleged that GPB Holdings "defrauded investors through a Ponzi scheme and other wrongful acts and seek[s] to wrongfully place the blame on Dibre," as GPB accused DiBre of misappropriating and self-dealing in the furtherance of a fraudulent scheme.

If you have invested through a broker-dealer in a GPB Capital Holdings product, such as the GPB Automotive Portfolio or waste management businesses and offerings such as Grand Central Automotive, or with any stockbroker or financial adviser whose unsuitable recommendation to invest in a high-risk and illiquid securities product has proven harmful to your interests through high-priced commissions or investment losses, please call our experienced FINRA arbitration attorneys at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.

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