Approximately 60 broker-dealers across the U.S. sold $1.7 to $1.8 billion of GPB investments marketed as private placements to investors. These GPB investments appear to be part of a large ponzi scheme. It is believed the broker-dealers failed to conduct adequate due diligence prior to recommending these securities to their retail clients. GPB issued several individual limited partnerships that may be the cause of significant investment losses. Some of these funds include:
- GPB Holdings, LP
- GPB Holdings II, LP
- GPB Holdings III, LP
- GPB Scientific, LLC
- GPB Cold Storage, LP
- GPB Automotive Portfolio, LP
- GPB NYC Development
- GPB Holdings Qualified, LP
- GPB Eurobond Finance PLC
- GPB Waste Management, LP f/k/a GPB Waste Management Fund, LP
We believe that some of the broker-dealers who sold GPB investments include:
- Aegis Capital
- Arkadios Capital
- Axiom Capital Management, Inc.
- Cabot Lodge Securities
- Coastal Equities
- Concorde Investment Services
- FSC Securities Corp.
- Geneos Wealth Management
- Kalos Capital
- Madison Avenue Securities
- National Securities Corp.
- Pursche Kaplan Sterling Investments
- Royal Alliance Associates
- Sagepoint Financial Inc.
- Sandlapper Securities, LLC
- Western International Securities
- Woodbury Financial Services, Inc.
SEC Charges Individuals and Affiliated GPB Entities with Ponzi Scheme
On February 4, 2021, the U.S. Securities and Exchange Commission (“SEC”) charged three people and their affiliated companies with operating a Ponzi-like scheme. The fraudulent acts, which raised more than $1.7 billion, are alleged to have been run by a New York-based asset management firm, GPB Capital. GPB Capital was also charged by the SEC with violating whistleblower protection laws.
