SEC Hits GPB Capital with $1.7 Billion Securities Fraud Claim, Investors Must Act

CHICAGO, Feb. 4, 2021 /PRNewswire/ -- Stoltmann Law Offices announces a $1.7 billion Civil Complaint filed by the Securities and Exchange Commission (SEC) against GPB Capital, its owners, officers, and affiliates, alleging a massive multi-year securities fraud, which will likely be the death blow to investor fund holdings.  For years, GPB and the brokerage firms that sold it to approximately 17,000 retail investors nationwide, have told investors to "wait it out" and that "GPB will be fine." Investors have been repeatedly told the only issue with GPB was its inability to nail-down audited financial statements. The news today suggests otherwise.  GPB is alleged to be a massive securities fraud scheme, by the SEC.  Stoltmann Law Offices is encouraging GPB investors to carefully consider pursuing claims against potentially liable third-parties, especially the brokerage and financial advisory firms, that solicited the investments. 

According to Chicago attorney Andrew Stoltmann, who is currently representing over 60 defrauded GPB investors in individual actions against numerous brokerage firms, "Contact our law firm for a free evaluation of potential claims against the brokerage firm that solicited you to invest in GPB.  It is pretty likely that investors will not recover much of their investment from GPB directly, and they will need to look at other avenues of recovery. The good news is, there are viable third-party claims against the brokerage firms that sold GPB to their investors." 

Stoltmann also notes, "I have been told at least 100 times by GPB investors, that they wanted to wait it out to see what happened with GPB. This desire to wait was usually based on representations made by GPB or by the investor's financial advisor. This messaging was wrong then and these investors need to act if they want any shot at recovering their money.. This SEC action will result in an avalanche of claims against brokerage firms, and you definitely do not want to be at the back of those claims."  

According to Stoltmann, "FINRA registered brokerage firms raised almost $1.6 billion collectively for GPB through soliciting investments from retail investors.  Brokerage firms have an obligation to only recommend suitable investments to their clients.  The first part of the Suitability Rule requires FINRA broker/dealer to perform adequate due diligence on private placements like GPB before the sales force/brokers are even allowed to sell the deal to clients. In many instances, brokerage firms simply rubber-stamp offerings so that they can be sold by their brokerage, who then reap massive commissions from selling private placements like GPB.  It's a gross conflict of interest." 

Stoltmann Law Offices is currently representing investors in claims in FINRA arbitration against numerous brokerage firms that sold their clients investments in GPB Capital funds.  These claims are filed as individual arbitration claims.  All of these cases are being handled on a contingency fee basis meaning there are no attorney fees owed unless we win.  Please call our law firm in Chicago, Illinois at 312.332.4200 or visit www.stoltmannlaw.com for more information.

CONTACT: Joseph Wojciechowski, 312-332-4200, [email protected]

SOURCE Stoltmann Law Offices

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