SEC is ordering GPB Capital Holdings to go into receivership for investor recovery.
NEW YORK, NY, USA, June 16, 2022 /EINPresswire.com/ — In light of former CEO David Gentile’s alleged attempts to reclaim control over the company and its funds, the Securities and Exchange Commission (“SEC”) petitioned a federal judge in New York on Monday to appoint a receiver for GPB Capital Holdings.
The SEC claims that the court’s previous appointment of an independent monitor is no longer sufficient, citing Gentile’s “bizarre notion” that the firm and the monitor must continue to pursue Gentile’s investment objectives rather than oversee a liquidation to maximize GPB’s assets and return funds to investors.
The SEC claims Gentile is attempting to restore control of GPB Capital in order to gain control of the roughly $1 billion in cash the company still has.
GPB Capital investors have been receiving unfavorable news concerning their investments for the past several years. While the potential “restitution” for investors may provide hope or optimism, it is not the only available option for GPB Capital investors.
The law firm of Haselkorn & Thibaut, P.A. (InvestmentFraudLawyers.com) is a national securities arbitration law firm that has pursued numerous private arbitration claims on behalf of GPB Capital investors (in the form of FINRA arbitration claims) all over the country, generally seeking investment losses and damages.
Call 1-888-614-9356 to receive a free copy of the “GPB Capital Holdings Investor’s Guide” and to schedule your fast, friendly and free case evaluation from an experienced securities arbitration attorney. The GPB Investor’s Guide is designed to assist investors in understanding the ongoing investigations and information surrounding GPB investments, as well as their potential options for recovering investment losses and damages. Investors who contact our office will be scheduled with an appointment often on the same day, or within 24 hours, and an experienced attorney will be available to help answer any questions.
For existing clients, the Haselkorn & Thibaut, P.A. law firm continues to investigate and closely monitor various GPB investments. Mr. Gentile’s recent actions is just another potential obstacle for GPB investors. For years many GPB investors have been told by their financial advisors to just “hang in there,” despite the lack of financial reporting, lack of timely tax reporting, ongoing financial concerns, continuous negative news, including the withdrawal of the auditor, to the indictments of several former principals and now Mr. Gentile’s efforts to seize control of any available liquidity. Once again, hope for any positive outcome remains in serious doubt.
The law firm Haselkorn & Thibaut, P.A. is currently representing a number of investors nationwide in GPB Capital cases (filed as FINRA customer arbitration claims) against the broker-dealers and financial advisors who recommended the investments to them in the first place. This looks to be a comparatively efficient, and direct option for many individuals to recoup some of their investment losses and damages.
GPB Capital recently sold Prime Automotive for $880 million in September 2021, according to reports. That deal was initially touted by the company (and by financial advisors) as a sure sign of future success. Now, it appears that despite the sale and anticipated liquidation, there remain ongoing investigations, ongoing lawsuits, and it is an open question whether or not investors in GPB Capital are likely to benefit from the sales proceeds from that deal, as proceeds may be needed to cover legal and other mounting expenses. The foregoing is especially true in light of Mr. Gentile’s actions from last Monday.
While many of the FINRA claims related to GPB were resolved on behalf of investors over the past several years, a small handful did go to a final FINRA hearing to be decided by one or more arbitrators. In some recent awards involving investments in GPB Waste Management and GPB Automotive Portfolio, the arbitration awards included a reimbursement of investor losses by a FINRA arbitration panel in New York.
As a general matter, GPB investors should be aware that there are time limits on their ability to bring any claims. Wait and see does not appear to be a viable recovery option. GPB investors can schedule a free case evaluation or account review by calling 1-800-856-3352 or visiting our website at www.InvestmentFraudLawyers.com. Many GPB investors appreciate being able to schedule a quick and free appointment for a case evaluation and opportunity to get their questions answered by an experienced securities arbitration attorney, as it allows them to learn about their various choices for recovering their GPB Capital investment losses and damages.
What options do investors have now?
While some class action lawsuits involving GPB Capital and other parties are pending, the vast majority of GPB Capital investors who have decided to take action have determined that filing a customer dispute (private arbitration) with the Financial Regulatory Authority (FINRA) Office of Dispute Resolution is the quickest, most efficient, and most direct way to resolve these issues. These lawsuits are being brought against the financial advisors and brokerage firms that suggested the GPB investment in the first place, as well as those who provided continuous investment advice on GPB investments.
The FINRA dispute resolution process involves document exchanges and is private, confidential, and non-public (and typically involves no depositions). The majority of investors choose to hire skilled investment fraud lawyers to help them navigate the FINRA claim procedure. These claims frequently involve complex legal and regulatory issues, such as issues related to the broker-dealer firm, investment advisory firm, or the financial advisor conducting proper due diligence, approval of the investment products, and a full inquiry as to the manner and process by which these securities were marketed, sold and supervised for investor clients.
We can assist you if you have suffered significant investment losses with GPB Capital. As a public service, experienced attorneys at Haselkorn & Thibaut, P.A. are available for a quick, friendly, and free consultations. For additional information, please call 1-888-614-9356 or visit our website.
The sole purpose of this press release is to investigate the manner in which GPB Capital Holdings investments were approved for sale to investor clients by broker-dealers, including new product evaluations, due diligence, and sales practices and the supervision over same. Please contact Haselkorn & Thibaut, P.A. at 1-888-614-9356 if you have any knowledge regarding such matters.
GPB Capital Holdings, LLC