GPB Capital, Brokers Under Fire

Already the focus of inquiries by the SEC and FINRA, the FBI recently made an unannounced visit to the New York investment firm, GPB Capital Holdings.GPB Capital has raised $1.8 billion through private placements. It raises those funds by getting financial advisers to sell GPB private placements to wealthy clients. According to its website, GPB Capital uses those funds to purchase income producing private companies.Registered reps from dozens of independent broker-dealers sold the high risk, high-commission private placements.GPB is the subject of other investigations and investor lawsuits. For example, it is being investigated by the Securities and Exchange Commission as well as the New Jersey Bureau of Securities, according to the company.The focus of the SEC's inquiry was the accuracy of disclosures made by GPB to investors, the performance of various funds and the distribution of capital to investors, according to published reports.—If you have any questions or…

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