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NEW YORK, July 09, 2019 (GLOBE NEWSWIRE) -- Shepherd, Smith, Edwards & Kantas, LLP (“SSEK Law Firm”) has been investigating GPB Capital for more than a year. The investigation began in April 2018 when GPB Capital first missed important filing deadlines with the SEC and has continued as more bad information has come out for GPB investors since that news broke. The bad news for GPB investors includes a former partner of GPB accusing the firm of operating “a very complicated and manipulative Ponzi scheme.” Then, in June 2019, GBP Capital finally confirmed that investors in its funds had lost between 25% and 73% of their money, with the two largest funds losing 39% (GPB Automotive Portfolio) and 25.4% (GPB Holdings II).
After that news, SSEK Law Firm began receiving calls from many GPB investors. SSEK Law Firm has now reviewed investor materials from GPB, which has caused us additional concern. For example, the GPB statements we have reviewed appear to be purposefully misleading. Instead of reporting the value of the investment, GPB only shows the “Gross Capital Contributions” and, if you read the footnote, GPB admits that it “should not be viewed as the current value” of the investment. The GPB statements are also careful not to ever talk about profits or dividends, but to call payments being made “Distributions” and the percentage rate of return as a “distribution rate”, rather than a profit dividend. Unbelievably, the footnotes admit that these “distributions” are “paid out of available working capital, including, but not limited to, investor contributions.” In other words, the payments GPB has been making from the beginning are either just a repayment of the money an investor placed with the company, or worse, money from new investors. That is the definition of a Ponzi Scheme and GPB Capital has apparently been admitting to the scheme on its monthly statements for years!
If you are a GPB investor, contact the SSEK Law Firm for a free, confidential evaluation of your situation and to learn your options. We have a team of attorneys, consultants and staff with more than 100 years of combined experience in the securities industry and in securities law.
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