Articles Tagged with GPB Capital securities attorney

shutterstock_172399811-297x300Our firm represents multiple clients who have collectively lost millions in the sale of fraudulent GPB Capital Holdings (GPB Capital) related investments.  Our firm has analyzed the GPB Capital offerings and believe that brokerage firms did not review these offerings in any significant detail.  Any serious due diligence would have revealed that GPB Capital was an investment fraud scheme.

Advisor Darren Kubiak (Kubiak), according to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA), has been accused of selling GPB Capital.  Kubiak is formerly registered with member firm Kalos Capital, Inc. (Kalos Capital).  In addition, Kubiak disclosed three total customer complaints and one FINRA regulatory action. If you have been a victim of Kubiak’s alleged misconduct our firm may be able to assist you in recovering funds.

FINRA alleged in a regulatory filing that Kubiak consented to sanctions and findings that he recommended the purchase of leveraged and inverse exchange traded funds (LIETFs) to customers without having a sufficient understanding of the risks and features associated with the LIETFs. FINRA found that Kubiak failed to have a reasonable basis to make these recommendations. In addition, according to FINRA Kubiak recommended these customers purchase LIETFs then held them for an average of 722 days causing Kubiak’s customers to incur approximately $98,000 in losses. FINRA found that Kubiak failed to perform reasonable due diligence and accordingly did not understand that LIETFs are generally expected to lose value over time and that losses are compounded because of daily resets.

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shutterstock_180412949-300x200Our firm represents multiple clients who have collectively lost millions in GPB Capital Holdings (GPB Capital) related investments.  Recently, class action lawsuits have been filed against GPB Capital with the goal of recovering investor funds.  However, it is our law firm’s belief that remedies against the sales agents who peddled GPB Capital offerings provide investors with potentially quicker and better recovery options.  Further, investors in many cases do not lose out from the ability to still collect from a class action resolution if such an event occurs.

Our firm has analyzed the GPB Capital offerings and believe that brokerage firms did not review these offerings in any significant detail.  Our firm’s investigation has found that brokerage firms failed to conduct due diligence and investigate multiple aspects of GPB Capital’s business including its senior management, fantastical business claims, and intra-fund lending practices.  For instance, with respect to GPB Capital’s senior management the company was founded by David Gentile (Gentile).  Had brokerage firms investigated GPB Capital’s senior manager it would have found that prior to founding GPB Capital, Gentile’s experience was as a CPA and company advisor with the accounting practice his family ran at Gentile Pismeny & Brengel, LLP (GP&B) in New York.  Nonetheless, GPB’s PPMs claimed expertise in these areas.   GPB Holdings II, LP, PPM, pg. 9 (Apr. 13, 2015) (“GPB’s senior management have a great deal of experience investing in the Automotive Retail, Managed IT Services and Life Sciences sectors.”).

Any investigation would have revealed that GPB Capital is merely the private equity investment arm of a plain vanilla accounting practice.  There is no evidence that GPB Capital’s senior management had the knowledge, industry experience, or investment experience to run the operations of a $1.8 billion dollar mult-asset strategy private equity fund and should not have been entrusted with investor funds.  Our investigation has also identified a number of business claims that any review would have revealed could not have possibly be substantiated.

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shutterstock_93851422-300x240Our firm represents multiple clients who have been recommended GPB Capital Holdings (GPB Capital) related investments. GPB invests in a variety of businesses but primarily in auto dealerships and waste management businesses.  However, over the past year controversy has embroiled GPB Capital in a saga including multiple regulatory investigations and even an FBI referral which has left investors clueless to the fate of their investments.

According to our investigation Kalos Capital, Inc. (Kalos Capital) and its brokers including Jason Mosher (Mosher) have recommended GPB Capital private placements to investors.  Investors at this point should prepare themselves for the worst possible outcomes including significant losses on their investments.  Investors who have invested in GPB Capital are encouraged to contact us for a free consultation.

As a background, financial advisers sold $1.5 billion of these high-risk private placements offered by GPB Capital Holdings. More than a year ago GPB Capital was supposed to file registration forms with the SEC for two of its largest funds to make certain accounting and financial disclosures required under the securities laws.  However the company did not meet its deadline back in April 2018 and now over a year later has no firm date when annual reports for the two funds will be filed and the public has no clue what those values will look like. It is highly unusual for an audit of a fund to take over a year without any material update to investors.  Even the largest of publicly traded companies that have accounting irregularities rarely take this long to make a restatement of their accounting numbers.  However, GPB has merely told investors to continue to be patient as the company has come up with never ending excuses that follow an all too familiar pattern in an industry wracked with fraud and abuse.

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