Articles Tagged with GPB fraud attorney

shutterstock_168478292-300x222Our 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 Robert Smith (Smith), according to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA), has been accused of selling GPB Capital.  Smith is currently registered with member firm Concorde Investment Services, LLC (Concorde Investment).  In addition, Smith disclosed four total customer complaints. If you have been a victim of Smith’s alleged misconduct our firm may be able to assist you in recovering funds.

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.”).

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shutterstock_54642700-300x200According to our investigation Kalos Capital, Inc. (Kalos Capital) and its brokers possibly including Eric Weschke (Weschke) have recommended GPB Capital Holdings (GPB Capital) private placements to investors.  Weschke has been subject to at least 13 customer complaints and two regulatory action during the course of his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), Weschke’s customer complaints allege that Weschke recommended unsuitable securities recommendations in a variety of products including alternative investments, real estate securities, and private debt among other allegations of misconduct in the handling of customer accounts.

In February 2019 a customer filed a complaint alleging that Weschke violated the securities laws by, among other things, that Weschke made unsuitable investment recommendations, breach of fiduciary duty, and failure to supervise during the time period October 2015 through 2017.  The claim is currently pending.

In February 2019 a customer filed a complaint alleging that Weschke violated the securities laws by, among other things, that Weschke made unsuitable investment recommendations, breach of fiduciary duty from October 2015 through 2017.  The claim is currently pending and alleged $200,000 in damages.

Investors who have invested in GPB Capital are encouraged to contact us for a free consultation.  Our 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.  Investors should prepare themselves that the worst possible outcome, including significant losses on their investments, may be unavoidable.

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