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Lost Money in GPB Capital Funds?GPB Capital has been charged by the Massachusetts Securities Division for allegedly misleading investors about its finances through marketing materials which contained false statements and omissions and violating state securities laws. This action marks the first government regulator to file a case accusing GPB of wrongdoing. Gibbs Law Group has already filed numerous legal claims on behalf of investors of GPB Capital Funds and continues to investigate potential claims on behalf of additional GPB investors. Our GPB Capital lawsuits involves claims against the brokerage firms that sold GPB funds to investors. To speak privately with an attorney about recovering your losses in GPB, click here. On May 27, 2020, the Massachusetts Securities Division filed a complaint against GPB Capital, stating that Massachusetts residents who contributed to GPB Capital funds relied on the understanding that investor distributions would be paid from operational profits. However, as indicated by the regulators, GPB may have been sing investor funds to pay these distributions instead. According to the complaint, "The funds' financials show that distributions were issued that exceeded the funds' net incomes, yet GPB Capital never updated any of its disclosure or marketing materials to reflect this." GPB's practice of using investor funds to pay distributions lowered the funds' available operating capital and created a "host of accounting problems," the regulators state. The complaint further alleges that GPB failed to disclose third-party transactions, conflicts of interest, and certain relationships relevant to GPB Capital and its investors. The Securities Division states that GPB constructed a narrative that investing in the company would "provide a continuous stream of income in addition to a big payday upon exit," but this has not been the case. Stockbrokers and financial advisors have a duty to disclose investment risks and provide investors with suitable investments, but it has been reported that brokers were incentivized to sell the GPB funds to investors because of the high commissions and fees they earned. Further, it has been stated that brokers received more than $100 million in commissions from selling investments in GPB funds to investors. Our law firm is pursuing legal claims against the more than 60 brokerage firms that sold GPB to investors, including Sagepoint Financial, Woodbury Financial Services, FSC Securities and Advisor Group. GPB investors are encouraged to contact our firm to learn more. What Should GPB Investors Do? If you invested in a GPB fund, you may be able to recover your losses. Visit our website or contact our securities team directly at (888) 410-2925 to speak privately with a securities attorney to learn about your legal options. About Gibbs Law Group Gibbs Law Group is committed to protecting the rights of investors and consumers nationwide who have been harmed by corporate fraud and misconduct. The firm has recovered over a billion dollars for its clients against some of the world's largest corporations, and our attorneys have received numerous honors for their work, including "Titans of the Plaintiffs Bar," "Best Lawyers in America," "Top Plaintiff Lawyers in California," "California Lawyer Attorney of the Year," "Top Class Action Attorneys Under 40," "Consumer Protection MVP," and "Top Cybersecurity/ Privacy Attorneys Under 40." This press release may constitute Attorney Advertising in some jurisdictions under the applicable law and ethical rules. View source version on businesswire.com: https://www.businesswire.com/news/home/20200603005240/en/ |
