GPB Capital Investors May Receive Some Compensation Under Proposed Distribution Plan

Posted on March 12th, 2025 at 11:59 AM
GPB Capital Investors May Receive Some Compensation Under Proposed Distribution Plan

From the desk of Jim Eccleston at Eccleston Law

GPB Capital Holdings investors have not received returns on their investments since 2018. According to InvestmentNews, after years of litigation, a court-appointed receiver has submitted a plan to return funds to the 17,000 investors who purchased $1.8 billion in GPB limited partnerships.

The receiver's plan, filed in federal court in Brooklyn, outlines potential recovery amounts ranging from zero to full reimbursement for some investors. GPB Cold Storage investors may see gains of 40 percent to 50 percent. However, not all investors will be made whole, and some may recover nothing, as reported by InvestmentNews. Founded in 2013, GPB Capital quickly grew by selling high-risk private placements through independent broker-dealers.

By 2018, the firm had raised $1.8 billion, promising investors an 8 percent annual return. However, that same year, red flags surfaced when GPB and its largest funds failed to file required financial statements with the SEC. InvestmentNews reports that, more than six years later, investors remain in limbo, waiting for the court to resolve objections and approve the receiver’s plan. Gentile and Schneider are scheduled for sentencing in April.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

Greg P.

LATEST NEWS AND ARTICLES

March 21, 2025
SEC Updates Marketing Rule Guidance to Clarify Extracted Performance and Portfolio Metrics

The Securities and Exchange Commission (SEC) has issued updated guidance on its marketing rule, addressing industry concerns regarding net performance requirements, extracted performance, and portfolio characteristics.

March 20, 2025
Stifel Loses Raiding Case, Ordered to Pay Over $7 Million in Legal Fees

Stifel Financial has lost its raiding and breach-of-contract claim against a group of advisors who left its Indianapolis office to establish their own firm.

March 19, 2025
FINRA Enforcement Actions in 2024: Fines Drop But Cases Increase

The Financial Industry Regulatory Authority (FINRA) imposed $59 million in fines in 2024, reflecting a 35 percent decrease from the previous year, according to an analysis by Eversheds Sutherland.