Massachusetts GPB Capital ComplaintMonday, June 1, 2020
If you invested in one of the GPB Capital funds, contact the ChapmanAlbin investor rights firm today. ChapmanAlbin has been on the forefront of investigations into GPB’s activities and is prosecuting loss recovery claims on behalf of investors, nationwide. You legal rights do not improve with age. Contact ChapmanAlbin today and you’ll speak with an experienced and knowledgeable investor rights attorney without cost or obligation.
If you’re a resident of Massachusetts, however, there’s probably no need to call us. Last Wednesday, May 27, Massachusetts regulators charged the firm with violating securities laws by making false statements to more than 180 Bay State investors who put more than $14 million in its private-equity funds. Read the complaint here.
The complaint acknowledges GPB’s success in one area, only: raising capital from investors. It alleges the firm achieved its success in this area by hiring brokers who repeatedly hammered investors with two key selling points—a yearly 8% distribution paid monthly, and distributions that were paid from operating profits. The complaint alleges:
GPB CAPITAL AND SCHNEIDER CAREFULLY CONSTRUCTED THE NARRATIVE THAT UNLIKE A TRADITIONAL RISKY PRIVATE PLACEMENT, WHERE AN INVESTOR PLACES CHIPS ON A ROULETTE TABLE HOPING FOR A POSITIVE OUTCOME, INVESTING IN A GPB CAPITAL FUND WOULD PROVIDE A CONTINUOUS STREAM OF INCOME IN ADDITION TO A BIG PAYDAY UPON EXIT.
The Massachusetts complaint goes on to claim that because various GBP entities were not generating enough in profits to pay investors the promised distributions, “they eventually turned to investor contributions to meet the demands of the 8% monthly distributions, and the fund financials tell as much.”
Over the last twenty-five years, The ChapmanAlbin firm has helped more than a thousand investors recover money lost in fraudulent, “Ponzi-scheme” type schemes. Call ChapmanAlbin today to learn your legal rights!