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ST. PETERSBURG, Fla., Sept. 13, 2019 (GLOBE NEWSWIRE) -- Goodman & Nekvasil, P.A., announces they have filed arbitration claims against Kalos Capital, Inc., National Securities Corporation and Moloney Securities Co., Inc., on behalf of investors who invested millions of dollars in GPB Capital Holdings, LLC (“GPB Capital”) investments. These claims allege that the GPB Capital investments were unsuitable for investors that did not know, among other things, that these GPB Capital investments were high risk, illiquid, included up-front fees of approximately 11.75%, and were inappropriate for investors unwilling to risk losing their entire investment. Goodman & Nekvasil, P.A., a nationwide securities arbitration law firm handling these cases on a purely contingency fee basis, has been contacted by numerous other GPB Capital investors requesting representation.
The facts released publicly so far are very negative. In April 2018, GPB Capital failed to file audited financial statements. In August 2018, GPB Capital announced no new investor capital would be accepted. In September 2018, the Massachusetts Division of Securities launched an investigation. In November 2018, GPB Capital’s auditors resigned, citing perceived risks. In December 2018, FINRA and the SEC launched investigations into broker-dealers that sold GPB Capital. In late February 2019, the FBI and the New York City Business Integrity Commission conducted an unscheduled visit of GPB Capital’s office. In June 2019, GPB Capital confirmed that investors in its funds have lost between 25% and 73% of their investment principal, with the two largest funds losing 39% (GPB Automotive Portfolio) and 25.4% (GPB Holdings II). Following this announcement, Fidelity Investments instructed its broker-dealer clients to remove GPB Capital-issued private placements from the Fidelity platform within 90 days. In August 2019, David Rosenberg, a principal of one of GPB Capital’s business partners, Prime Automotive Group in Massachusetts, accused GPB Capital in publicly available court papers of financial misconduct and running a “Ponzi-like scheme.” In September 2019, GPB Capital again delayed the release of audited financial statements.
If you are a GPB Capital investor, contact Goodman & Nekvasil, P.A., for a free, confidential evaluation of your situation by our team. All of our cases are handled on a purely contingency fee basis.
Kalju Nekvasil, Esq.
Goodman & Nekvasil, P.A.
624 1st Avenue South
St. Petersburg, FL 33701-4120
www.rightsforinvestors.com (Law Firm’s Website)
https://www.gpbinvestmentrecovery.com/ (GPB Capital Investor Website)