GPB Capital Lawsuit July Update – Earlier reports indicated GPB Capital had paid out over $100 million in commissions to promote the sales of various investment funds to the customers of some 60 different broker-dealers and the professional financial advisors working for those firms. That figure is now being reported to be as high as $167 million in commissions. Also, what was believed to be an approximately 8% commission level to sell these investments is now believed to be as high as 9.3%.
GPB Capital Lawsuit to Recover Losses
Haselkorn & Thibaut, InvestmentFraudLawyers.com, has filed multiple GPB Capital lawsuits for investors to recover losses. Investors should call 1-800-856-3352 to have a free review of their case.
While GPB Capital investigations and negative news began last year, most of those broker-dealer firms and professional financial advisors attempted to pacify their clients’ growing concerns by recommending that they continue hold on to GPB, continue to hope for better more positive news, and pointed in some cases to the fact that their account statements continued to report GPB investments at their original purchase value.
It was easy for some brokerage firms and financial advisors as they had long ago already cashed their commission checks for selling these products.
Most brokerage firms and financial advisors that clients were relying on over the past year to provide them with material updates as well as recommendations or advice no longer had much incentive to do any heavy lifting on the subject. The steep commissions were already paid.
Unfortunately for clients, the value of the investments they actually purchased has dropped dramatically. All 7 GPB investment funds now only reflect a reported total value of approximately $1.1 billion (from an original $1.8 billion of investor capital that was raised).
While the overall average reflects a near 40% drop in value of the GPB Capital share price compared to the original capital raised, there are some additional points that will likely catch the eye of investors when they receive their next account statement reporting the value of their GPB investments.
As an example, one GPB Capital investment fund, the GPB Armada Waste Management raised a total of approximately $163 million from investors, but the most recent estimated value is only approximately $53 million. A decline of over 67% from the purchase price. For an investor that paid $100,000.00, the current reported value is only approximately $33,000.00. That will undoubtedly raise some eyebrows when the June 2019 account statements arrive.
GPB Capital was asked about the sharp declines in value, and a spokesperson for GPB Capital reportedly responded: “GPB Capital is working to complete the audited financials, which will provide additional disclosure and information to the limited partners regarding performance.”
After acknowledging back in March 2019 that GPB Capital Lawsuit was being investigated by the FBI, and given the substance of the response above, it is no surprise that investors once willing to sit on the sidelines and hope for the best are now taking action to recover their investments in GPB.
GPB Capital Losses Cover Up
Finally, in an effort to pacify some clients, brokerage firms as well as professional financial advisors, not only pointed to the values on the account statements which reflected no change (up until now) and further pointed to GPB having returned a total of $272 million to investors through distributions, which clients thought of as similar to interest or dividends. That total figure is approximately 15% of investor capital and it is believed that GPB documents reflect that distribution was merely a return of investor capital, not a return on the capital invested.
As investors are processing the high commissions that were pocketed, the steep declines, and the fact that the distributions previously received consisted of a return of their investment, not on their investment, their patience is wearing thin and more and more investors are taking action to try to recoup their investment losses.
Haselkorn and Thibaut, InvestmentFraudLawyers.com, specialize in fighting for investors. We have over 100 years of experience and 95% success rate. Call us now for a free consultation at 1-800-856-3352. No Recovery, no fee.