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}, National Investment Fraud Lawyers - No Recovery, No Fee -Call Us 1-800-856-3352, Investment Fraud Lawyers | Financial Advisor Fraud | SEC & FINRA Attorneys, Offices in Florida, New York, Arizona, Texas & North Carolina, Copyright 2023 Investment Fraud Lawyers, Call Now for a FREE Consultation 1-800-856-3352, Haselkorn and Thibaut, InvestmentFraudLawyers.com, specialize in fighting for investors nationwide and have offices in Florida, New York, North Carolina, Arizona, and Texas.

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7. Financial advisors and brokers have legal and regulatory responsibilities to adhere to the rules and regulations of the securities industry. Eventually, Gentile sought to fully integrate and take control of Ascendant Capitals broker-dealer activity, and registered his own broker-dealer. Volkswagen of America is suing GPB Capital/Prime Automotive group. Plaintiff: Kinnie Ma Individual Retirement Account, Karen Loch, Victor Wade Individual Retirement Account, Shirley Stone Living Trust, dated January 9, 1992, as amended May 24, 2005, Jeffery S. Gramm Individual Retirement Account, Dean Crooks, Robert A. The Financial Industry Regulatory Authority Inc. (FINRA) opened an investigation. Scientology Does! VIDEO: Finally, Scientific Proof that Scientologys Body Thetans Cannot Exist! Highline, which manages the day-to-day operations of GPB Capital's sponsored partnerships, negotiated the sale with BPOC. endstream endobj 63 0 obj <. If we rely upon the June 2020 ADV number of $238,637,198, GPB Capital Holdings incurred a mind-blowing ~$861 million loss in one year.

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Jeffrey Schneider, GPBs placement agent Ascendant Capital, David Gentile, and Jeffrey Lash, both executives of GPB, have been charged with wire fraud, securities fraud, and conspiracy against 17,000 investors. Question: If Highline Management, Inc. was created to manage the daily business operations of GPB Capital Holdings then why is Austin Lake Technologies also required as an independent support partner that provides strategic, management, and operations consulting services to the adviser? Any proposed material corporate transactions by GPB and/or Highline Management, Inc. ("Highline"), the GPB Funds or the Portfolio Companies, or any other proposed material corporate transactions as the Monitor may, in the Monitor's sole . What was the original cost of these investments when they were recommended to you?

"headline": "GPB Capital Lawsuit: GPB Holdings Ponzi Scheme",

Left unexplained in the Form ADV is how Health Prime, a GPB Capital portfolio company, is now owned by Mike Frosts Austin Lake Technologies. In July, the alternative asset firm reported in its Form ADV to the SEC that its assets under management (AUM) had declined by nearly $200M between the end of 2017 and June 2019from $434M in AUM to $196.3M. Jeffry Schneiders Ascendant Capital website has been disabled and is non-operational at this writing. In October 2019, GPBs Chief Compliance Officer was indicted. Ponzi schemes always fail at the cost of investors substantial losses. Pa. 18-cv-01826. Highline, which manages the day-to-day operations of GPB Capital's sponsored partnerships, negotiated the sale with BPOC. As we allege today, however, this was all a lie. Petersburg, and Washington, D.C. It is believed that there are some 6,000 investors that have invested over $1 billion in GPB investments. New York Money Manager Pleads Not Guilty In $1.8 Billion Fraud - Forbes The Company offers equities, portfolio management, financial planning, and advisory . Given the Gentile-Schneider undisclosed and bad faith architecture of paying excessively high commissions, paying themselves excessive fees at every step of the way, and failing to disclose their self-dealing and numerous conflicts of interests, we think there is a case to be made that GPB Capital was inherently fraudulent from the beginning. KUHN GMD2850TL Online Auctions at EquipmentFacts.com. With respect to the allegations contained in the civil action filed against GPB Capital by the Commonwealth of Massachusetts, we ask if GPB Capital is a case of fraud ab initio, i.e. Appropriate due diligence would further identify issues that concern investors (compared to other potential investments), including high costs, high commissions, illiquidity, and conflicts of interests that would make the investment not suitable for retail investors or certain classes of retail investors such as retirees, elderly investors, etc if the investments are long-term and illiquid in nature, that more than likely would not suit the investment objectives, needs, or goals of an elderly or retired investor in many cases. Usually, its not hard to guess at whats at the heart of a fund falling apart, but there are so many different things apparently going on here that its really impossible to tell, and its impossible to predict how things will turn out, other than being certain that theyll end badly for investors. A GPB Capital class action lawsuit against GPB was registered in a Texas US District Court. This site uses cookies. GPB policy requires the use of a valuation provider to support its Valuation Committee in determining appropriate valuation and assets under management. See our recent article on this puzzling development. How many securities arbitration cases have you actually tried during the past 30 years? 4B. A large number of them have filed lawsuits (FINRA) to recover losses. endstream endobj startxref

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Skelton replaced Prime Automotives Interim CEO Kevin Westfall, another AutoNation alumnus. Specifically, GPB stated that its inability to hire a valuation firm resulted in its June 2020 RAUM being wholly based upon June 2019 numbers (emphasis ours): In our view, GPBs complexity and dishonesty explain why no third-party valuation firm would want to do business with GPB Capital Holdings. Embattled fund manager GPB Capital sells 30-acre cold storage parcel In other words, investors were saying that GPB Holdings was paying investors with new investors funds, thus the definition of a Ponzi scheme. A Ponzi scheme is where people are promised a return and paid money from other investors. There are currently 10 separate companies: GPB Automotive Portfolio LP, GPB Cold Storage LP, GPB Eurobond Finance PLC, GPB Holdings II LP, GPB Holdings, III LP, GPB Holdings Qualified LP, GPB Holdings LP, GPB NYC Development, GPB Scientific LLC, and GPB Waste Management LP formerly: GPB Waste Management Fund LP. Kirkland & Ellis, LLP served as legal advisor and Houlihan Lokey.

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United States Attorneys Office The only acquisition candidates available to GPB, therefore, were the ones the smart money had already picked over. If you invested in any of the following funds, contact our securities fraud lawyers today for your free case consultation. Date of Report (Date of earliest event reported): June 30, 2022. Kinnie Ma Individual Retirement Account v. Ascendant Capital, LLC et al The SEC mandated the use of RAUM in Form ADV in 2012. Intuit Announces 2023 Cohort of Toronto Startup Accelerator Program The SEC has requested the appointment of an independent monitor to oversee GPB Capital Holdings amid allegations the asset management firm defrauded more than 17,000 retail investors in a "Ponzi-like" scheme. Due diligence includes an initial investigation into the GPB investment: and that includes potential benefits, risks, and tax consequences, as well as a review and investigation of GPB itself, the underlying business, the history of the company or business as well as key individuals, and other relevant factors, including any actual or potential conflicts of interest. This latest ADV shows GPBs Regulatory Assets Under Management (RAUM) as $238,637,198.

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This is the subject of a future article as we follow the GPB money trail into Clearwater, Florida. GPB Capital Closes Sale of Alliance Physical Therapy - StreetInsider.com Manhasset, New York, John Marzulli This comes after the change of the CEO, an additional lawsuit by the former CEO, and the arrest of GPBs Compliance officer for obstruction of justice. The principal purpose of each Company is to acquire controlling majority (and in many cases, wholly owned) interests, whether equity, debt or otherwise, in income-producing, middle-market private companies in North America; to provide hands-on managerial and operational assistance to such companies; and to further develop operations of such companies and increase cash flow and current income from operations. Main Office GPB also openly complains of the high costs to become compliant: In another paragraph, GPBs Brochure Part 2 quite openly describes the self-dealing and conflicts of interest inherent in the deliberately-constructed relationship between GPB Capital, Ascendant Alternative Strategies, and Ascendant Capital: The document further states, GPBs Founder and Chief Executive Officer, is an indirect minority owner of AAS (but not Ascendant Capital). GPB Capital Holdings (GPB) purportedly invests in (among other industries) waste management and automobile dealership businesses. What investor clients were (or were not) told at the time of the recommendation and, later, as that information has unfolded, may also be a material issue. This speaks to the role Mike Frosts company Austin Lake Technologies plays within the GPB Capital scheme: Describe any other investment-related business activities conducted from this office location:AUSTIN LAKE TECHNOLOGIES CURRENTLY SHARES OFFICE SPACE WITH ADVISER PERSONNEL. From 2013 through early 2018, Lash was responsible for overseeing the GPB Funds investments in car dealerships, which made up a sizable percentage of GPBs portfolio companies. 6. President @ Highland Management Group, Inc - Crunchbase ],

The current unrealized loss is $92,725,188.00. NEW YORK, Nov. 18, 2021 /PRNewswire/ -- GPB Capital Holdings, LLC ("GPB Capital") has finalized the sale of Prime Automotive Group to Group 1 Automotive, Inc. ("Group 1"), an. ", Transaction delivers significant value for GPB Capital's investors. GPB Capital Closes Sale of Alliance Physical Therapy | citybiz Official websites use .gov Heads of GPB Capital, Related Firm Indicted in Alleged Private Equity GPB served as the general partner of several investment funds, including GPB Holdings, LP (Holdings I), GPB Holdings II, LP (Holdings II), GPB Automotive Portfolio, LP (Automotive Portfolio), GPB Waste Management, LP (Waste Management) and GPB Cold Storage, LP (Cold Storage) (collectively, the GPB Funds). this Court over GPB Capital Holdings LLC ("GPB CH"). 2019-0071-SG). Given the inherently complex and deceptive structure of GPB Capital Holdings, we must ask if the $239 million RAUM represents only Regulatory Assets Under Management as opposed to a larger amount GPB Capital Holdings deems to fall outside of public reporting requirements. Also in July, investors of the GPB Capital Holdings II were told that they would not be getting the key documents they needed to submit with this years tax filingsa deadline that was already postponed by three months due to COVID-19. Notably missing from the list of GPB executives is Evan Myrianthopoulos, the long-time head of Debt Strategies at the firm. Most investors were unaware of the losses until they received notices from their broker-dealers. TIMELINE OF GPB EVENTS - GPB Capital Investment Recovery Farm Equipment For Sale - 0 Listings | TractorHouse.com - Page 0 of 0 At TractorHouse.com. January 2022 GPB Capital Update: David Gentile Seeks Mediation - MDF Law Does Your Religion Pay You Commissions? Age: 54 Scientologist-Owned GPB Capital Admits to Staggering Losses in Latest The fact that Stroock slashed the salary of equity partners 20% this past May might have been a factor in Emanuels decision to jump from Stroock, a prestigious firm that brought in $258 million in gross revenues in 2019. In other words, innocent people would have to surrender their distributions, even if they have to dig deep to do so because it was money they lived on. As was widely reported, Cohn was charged with felony obstruction of justice related to his employment at GPB Capital Holdings. Emanuel joins a handful of other high-caliber non-Scientology lawyers who find good money working in Scientologys orbit where the invisible hand of L. Ron Hubbard guides things from the beyond through the written policies he left behind. Even more shocking was when investors couldnt sell their GPB Capital funds. GPB Capital paid Ascendant Alternative Strategies and Ascendant Capital millions of dollars in connection with marketing GPB Capital funds and in connection with acquisitions made by GPB Capital. GPB said it would pay for investors by income generated from the private partnerships. Moreover, the property on which many dealerships sit is owned by separate companies under the GPB Capital umbrella.

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ELITE TRAILER MFG Trailers Auction Results - 78 Listings | TruckPaper Highline currently oversees on GPB's behalf all day-to-day functions of the Partnership and its subsidiaries, including management of all underlying assets, human capital, accounting and financial reporting, and operations pursuant to a Management Services Agreement ("MSA"). This leads to our next point: 4. Enter your email address to follow this blog and receive notifications of new posts by email. GPB Capital Holdings is classed as an Investment Adviser. This means it has to fill out Form ADV. NEW YORK, Nov. 18, 2021 /PRNewswire/ -- GPB Capital Holdings, LLC ("GPB Capital") has finalized the sale of Prime Automotive Group to Group 1 Automotive, Inc. ("Group 1"), an. Highline Management, Inc., which manages the day-to-day operations of GPB Capital's sponsored partnerships, negotiated the sale with Group 1. An audit can only be as accurate as the party being audited provides honest and correct information and opens its books fully. The defendants were arrested today, and Gentile will appear this afternoon in federal court in Boston, Massachusetts, Schneider will appear in federal court in Austin, Texas, and Lash in federal court in Fort Myers, Florida. GPB was unable to conduct valuations in third and fourth quarters of 2019 due to the lack of a third-party Valuation Service Provider. Highline Capital :: Highline :: Welcome What is your track record? Ch. GPB Capital Holdings (?GPB?) In those allegations, information (from 2016) appeared to suggest conflicts of interest, including investor funds potentially being utilized for personal business interests. That is a 45.2% plunge. SSEK Law Firm has filed stockbroker fraud claims against firms such as Kalos Capital, Arkadios Capital, Money Concepts Capital, Ameriprise, Triad Advisors, and many others on behalf of investors who purchased private placements in one of GPB Capital Holdings many funds. GPB Capital Investment Recovery Rosenberg sued GPB and the parties are now locked in an acrimonious lawsuit. If you invested in any of the following funds. The Court-appointed monitor in the SEC's action against Ponzi-like scheme GPB Capital Holdings LLC today submitted a letter at the New York Eastern District Court. We have no idea what GPBs most recent RAUM number actually means. ",
GPB told prospective investors that it would purchase, among other assets, income-producing auto dealerships and waste management businesses with capital from investors, promising them 8% returns . GPB serves as general partner and/or manager for various companies (each, a Company, and collectively, the Companies) which do not meet the definition of investment company and thus will not register under the Investment Company Act of 1940, as amended (the 1940 Act) and whose fund interests (Interests) are not registered under the Securities Act of 1933, as amended (the 1933 Act). or other current GPB CH or Highline management that, in my judgment, has led to any loss of Case 1:21-cv-00583-MKB-VMS Document 104 Filed 07/08/22 Page . A locked padlock Welcome to ComplianceWeek.com. Industries Financial Services Company size 11-50 employees Headquarters New York, NY Type Privately Held Founded 2020 Locations. , Highline Management Inc., which was set up earlier this year, is now overseeing the firms business affairs. GPB Capital Closes Sale of Alliance Physical Therapy - Insider Nearly a year after he was charged with obstruction of justice, Michael Cohn, the former Chief Compliance Officer of GPB Capital Holdings, has pleaded guilty to the misdemeanor crime of theft of government property. There may also be issues as to whether due diligence files were properly updated as material issues, including those noted above, were made public or could have been discoverable by the firms. Here is the posted RAUM from the June 30, 2020 ADV: Where did all the money go? We have substantial experience pursuing claims against brokerage firms and financial advisors on behalf of investors nationwide. This latest writedown makes it a virtual certainty that the investors in GPB will get nothing back. The promise was (IIRC) 8% per month, in other words 96% per year, in other other words, doubling your investment every year. Beyond that, its hard to say exactly how things will fall apart and when, other than being certain that its going to be painful. %PDF-1.5 %

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A lock ( GPB Capital Founder and CEO Among Three Individuals Indicted in Private Equity Investment Fraud Thursday, February 4, 2021 For Immediate Release U.S. Attorney's Office, Eastern District of New York The Defendants Allegedly Misrepresented GPB's Performance and Paid Distributions with Investor Funds Last year GPB Capital Holdings plunged from $1.8 billion to $1.1 billion Regulatory Assets Under Management. First, be aware that an investor has a limited time window to recover losses. GPB Capital Holdings, LLC, a Delaware limited liability company ("GPB" or the "Manager"), is a New York-based middle-market acquisition and operations firm whose principals are experienced financial, management and accounting professionals with several decades of combined private investment and acquisitions experience. GPB Capital Holdings Ordered into Receivership - EIN News Published By Shepherd Smith Edwards & Kantas, LLP, NorthStar Financial Services (Bermuda) - Learn More Here. LinkedIn shows Wally Bishop, a long-time exec at Deutsche Bank, serving on the Board of Directors and the Audit Committee at Highline Management: LinkedIn also shows Tom Hawkins serving on the Board of Directors of Highline Management: On his LinkedIn page, Hawkins represents that GPB Capital Holdings (though he does not use the GPB name) has $1.5 billion in investments. GPB Capital Holdings at the end of June reported a sharp decline in its regulatory assets under management over an 18-month period and several changes in management and financial oversight. Enter your email address to follow this blog and receive notifications of new posts by email along with 7129 other subscribers. Ascendant Capital began as a branch office of a New York-based broker-dealer but in 2017 became a branch office of the Gentile-owned broker-dealer Ascendant Alternative Strategies, LLC (Ascendant Alternative Strategies). We have substantial experience pursuing claims against brokerage firms and financial advisors on behalf of investors nationwide. GPB Capital Holdings, LLC ("GPB Capital") has finalized the sale of a 30-acre parcel of land that was owned by GPB Cold Storage, LP (the "Partnership"). Before working for the alternative asset firm, the ex-CCO was a US Securities and Exchange Commission (SEC) examiner. David Gentile Sues Shareholders for $755,038.00 In Professional Fees On December 20, 2021, David Gentile filed a complaint in Delaware Chancery Court against GPB Capital Holdings as well as several related entities, including GPB Automotive Portfolio, GPB Waste Management and GPB Cold Storage. HQ Phone (212) 235-2650 Company GPB Capital Rob Chmiel Current Workplace GPB Capital Location 535 W 24th St Fl 6, New York, New York, 10011, United States Description Read More Industry Venture Capital & Private Equity Finance Discover more about GPB Capital Org Chart - GPB Capital Rob Chmiel Interim Chief Executive Officer Phone Email Phone Email "We are actively working with our independent Monitor on a plan to distribute the available proceeds from the transaction to GPB Capital's partnership investors. Update on the GPB Capital Lawsuit and ponzi scheme update. Specifically, Gentile and Schneider, both individually and through employees at Ascendant, represented to investors in Holdings I, Holdings II and Automotive Portfolio that the GPB funds would make a monthly distribution payment to investors that would be fully covered by funds from operations, meaning that the companies purchased by the funds would be sufficiently profitable for the monthly payments to be made from the companies cash flow, without drawing from capital raised by investors. Highline Management, Inc., which manages the day-to-day operations of GPB Capital's sponsored partnerships, negotiated the sale with Group 1. This leads us to ask if a career car guy like Tom Hawkins is up to the task of managing a third-party valuation firm as it attempts to value GPBs assets across a wide range of divergent portfolio companies such as biotech, cold storage, and healthcare software. GPB is in the final stages of interviewing replacements. GPB Capital Holdings has played incessant games with its website over the past two years. Page 1 of 1 Kevin Westfall originally stepped in to replace David Rosenberg who was fired as CEO of Prime Automotive by GPB Capital. GPB Capital Closes Sale of Prime Automotive Group to Group 1 - Insider The complaint alleges that a majority of the $1.8 billion GPB generated went into the companys owners/principles. As stated in the Massachusetts complaint against GPB: Ascendant Capital is wholly-owned by Gentiles business partner Jeffry Schneider. }}
Our attorneys are available as public service to review your investment accounts and counsel you, and answer your questions at no charge. PDF "In both cases, it is my belief that the extensive and deliberate Michael Emanuel replaces former GPB CCO Michael Cohn. Scientology Fair Game: Cult Leader David Miscavige Orders Attacks on Marc Headley and His Business, US Federal Prosecutor Now Investigating Retired LAPD Cop & Scientology Pal Captain Cory Palka for Corruption, Subpoena-Evader and Thug Life Scientology Leader David Miscavige Served a Subpoena by a US Federal Court on Valentines Day 2023, Scientologist David Gentile Goes Down in Flames in the Pretrial Phase of His US Federal Criminal Case. Whether or not the funds are even currently worth the value reported by the company as the sponsor remains to be seen and has not been verified as of yet by any outside auditor firms. Page 1 of 1. Enter your email address to follow this blog and receive notifications of new posts by email. It is exactly as the Commonwealth of Massachusetts wrote: [GPBs] funds have a number of sub-funds, and those sub-funds have various ownership interests in portfolio companies. Financial advisors and brokers have legal and regulatory responsibilities to adhere to the rules and regulations of the securities industry.. Unfortunately, when investors failed to be paid, GPB argued that the returns/income would be distributed based on the partnerships performance. Many investment companies have declared bankruptcy and left their investors holding the bag.

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Has your broker or financial advisor contacted you to review these investment holdings and discuss the status? SEC Seeks Monitor to Protect GPB Capital Investors - Investor Lawyers Blog GPB Private Placement Investors Continue to File Fraud Lawsuits Against Broker-Dealers. Recently, another auditor retained by GPB resigned. The statement concerning the role of Jeffry Schneider and Mark Martino of Ascendant Alternative Strategies: Regarding the Advisers response to Item 7(B)(1)(A)(28), it should be noted that Ascendant Capital, LLC a related party of ASCENDANT ALTERNATIVE STRATEGIES, LLC (Member FINRA/SIPC (CRD# 283881 / SEC# 69769)), provides services to GPB Capital Holdings, LLC and its clients and indirectly receives, and may directly receive, reimbursements or other compensation from such parties. The Monitor goes on to describe the process by which he, alongside the GPB Capital and Highline management teams, are continuing work to analyze the optimal path forward for the assets that remain in the GPB Funds: "In the same thoughtful, deliberate and thorough manner that we collectively approached the Later in June 2019, GPB informed investors that updated valuations had decreased even further, some by another -25%. WHY GPB CAPITAL HOLDINGS CANNOT STATE THE TRUE VALUE OF ITS ASSETS. GPB excludes the value of the assets in its holding companies in its RAUM. They would be entitled to some recovery out of the rubble left, on an equal basis with people who didnt get distributions, but thats obviously going to be a lot less than whats clawed back. At Haselkorn and Thibaut, InvestmentFraudLawyers.com, our attorneys specialize in helping investors maximize the recovery of their investment losses. Thats pretty stupid but is not necessarily criminal collecting money from investors, charging them 8% to 11% commissions, then keeping the money in a money market account and just handing it back as distributions, to be taxed again is incredibly dumb, but it may or may not be a crime depending on the precise details. According to its report, since the appointment of the monitor in February 2021, the two main areas of focus have included: (1) Financial Reporting and (2) GPB Investments. Law360 (June 13, 2022, 8:20 PM EDT) -- The U.S. Securities and Exchange Commission on Monday asked a New York federal judge to appoint a receiver for GPB Capital Holdings amid a criminal case . Finally, there are practical considerations in cases where investors are aware of losses and potential claims but choose to delay taking action. There is a limited time window for an investor to recover losses.

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We Represent GPB Investors Has your firm actually filed GPB cases? ROME 1120 Auction Results - 2 Listings | AuctionTime.com - Page 1 of 1