After GPB failed to produce required audited financial statements, a series of investigations and lawsuits ensued:
April 2018: GPB failed to produce audited financial statements
August 2018: GPB Announced no new investor capital would be accepted
September 2018: Massachusetts Division of Securities launched investigation
November 2018: GPB’s auditor resigned, citing perceived risks
December 2018: FINRA and SEC launched investigations into broker-dealers that sold GPB
February 2019: FINRA and SEC launched investigations into broker-dealers that sold GPB
June 2019: GPB Capital allegedly reported significant losses in the value of GPB Holdings II and GPB Automotive Portfolio, which declined more than 25% and 39%, respectively. GPB's other funds allegedly reported declines in estimated value ranging from 25% to 73%. Following the announcement, Fidelity Investments allegedly instructed its broker-dealer clients to remove GPB Capital-issued private placements from the Fidelity platform within 90 days.
July 2019: Class action lawsuit filed on behalf of investors against GPB Capital Holdings
August 2019: David Rosenberg, a principal of a private company and one of GPB’s business partners, Prime Automotive Group in Massachusetts, is also accusing GPB in publicly-available court papers of financial misconduct and running a “Ponzi-like scheme”.
September 2019: Once again, GPB delays release of audited financial statements.
September 2019: David Rosenberg is fired as CEO of Prime Automotive, following Rosenberg’s accusations of financial misconduct against GPB.
October 2019: Michael S. Cohn, Managing Director and Chief Compliance Officer of GPB Capital Holdings, LLC (GPB), charged with obstruction of justice, unauthorized computer access and unauthorized disclosure of confidential information.