For GK 7% Bond Investors Who Sustained Serious Losses, The Time To Act Is Now. Our Broker Fraud Law Firm Can Help You Assess Whether You Have Grounds For A Claim
If you are a GK 7% Bond investor, there is still time to explore your legal options and find out whether your broker should be held liable for your investment losses. Shepherd Smith Edwards and Kantas (investorlawyers.com) is continuing to investigate the broker-dealers, including managing brokerage firm JCC Advisors, that marketed and sold these debt instruments to customers. Contact us today to request your free, initial case consultation.
What Are GK 7% Bonds?
These unsecured bonds come from GK Investment Holdings, which focuses on real estate holdings and management. The alternative asset firm promised a 7% interest rate and promoted the bonds as a means for investors to make income.
There were $50M of GK Investment Holdings 7% bonds issued for sale at a cost of $1,000/bond. The minimum purchase was 5 GK 7% bonds for $5,000. In 2022, bondholders were notified that if 90% of them didn’t trade in current GK 7% bonds for new ones, the alternative asset company could default on the old bonds. Repayments could be delayed or not issued. Not only that, but GK Investment Holdings was at risk of filing for bankruptcy if not enough investors agreed to the exchanges.
According to a 2024 filing by GK Investment Holdings with the US Securities and Exchange Commission (SEC), about 80.10% of outstanding Old Bondholders chose to take part in the Exchange Offer and agreed to the Second Supplemental Indenture. As of June 30 of last year, the alternative asset firm had $26,201,550 of New Bonds outstanding.
Why Are Investors Exploring Their Legal Options?
There are growing concerns of misrepresentations and omissions involving these debt instruments, which may have been marketed as safe and income-generating when, in fact, they were much riskier than what they were promoted to be. GK Investment Holdings bonds were purportedly backed by very speculative real estate ventures.
Not only that, but more than half of the investors that purchased them were seniors with a conservative or moderately conservative risk tolerance level. Many of them were novice investors. All of that indicates that these unsecured bonds were clearly unsuitable for these retail investors from the start.
Our Broker Fraud Law Firm is looking into whether investors’ brokers unsuitably recommended and sold GK 7% bonds to customers. We are also investigating claims of misrepresentations and omissions, concentration, failure to supervise, negligence, due diligence failures, best interest violations, breach of fiduciary duty, and more.
Trusted Broker Fraud Law Firm
The Shepherd Smith Edwards and Kantas Broker Fraud Law Firm has been representing investors who have been the victims of broker misconduct or negligence for decades. We know how to determine whether financial advisor fraud played a role in your investment losses and can help you assess your best course of action.
We strongly recommend that you DO NOT try to resolve this matter directly with your broker-dealer or their stockbroker. Most firms will try to deny any wrongdoing. Any conversations with them about this matter could hurt your chances of financial recovery if you do have grounds for pursuing damages.
We have helped thousands of investors to recoup their losses from broker-dealers and investment advisers. We know how to maximize a client’s chances for a full recovery and our securities firm is highly skilled when it comes to representing investors in arbitration, mediation, litigation, or negotiations.
Call (800) 259-9010 or fill out this contact form to speak with one of our knowledgeable GK 7% Broker Fraud Law Firm team memebers.