GPB Capital Holdings Accussed Of Ponzi Scheme

Patrick Dibre, a former business partner of GPB Capital Holdings, is accusing the asset management firm of operating a Ponzi Scam. Dibre made his claims in his counter-suit filed against GPB after the company sued him.

GPB Capital is at the center of a growing controversy surrounding brokerage firms that sold its private placements, raising $1.8B in the process. The asset management company, which invests primarily in auto dealerships and waste management companies, has been under fire since late last year when it suspended its sale of the private placements, as well as redemptions to investors. It also is under investigation by the US Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), state regulators, and the Federal Bureau of Investigation (FBI).

The following GPB funds are under investigation:

GPB Holdings (I), II, and III
GPB Cold Storage
GPB Automobile Portfolio
GPB Waste Management
GPB Holdings Qualified
GPB NYC Development

GPB Capital sued Dibre last year, accusing him of fraud and other breaches and claiming that his actions were responsible for millions of dollars in losses. The firm hired Dibre, an experienced auto dealership owner and operator, to help navigate the car dealership landscape. Part of their agreement involved GPB buying several of Dibre’s auto dealerships for more than $80M, while keeping him on as their operator. The partnership eventually failed and the firm sued him.

Dibre filed a counter-suit in which he contended that the millions of dollars in losses that GPB is claiming he was responsible for, are actually due to its running of a complex Ponzi scam. Furthermore, he alleged that the fraud involved:

GPB documenting a higher buying price for his dealerships than the actual price paid.
The transferring of funds between companies when a GPB fund was financially behind.
The payment of about $100K a month to a relative of one of GPB Capital Holdings’ owners for accounting services that were either over-billed or were never performed.
The expenses occurred by GPB principals of luxury items, including luxury vehicles and private jets.
Doctored financial statements for both GPB funds and the auto dealerships to conceal certain activities.

GPB Capital Holdings Fraud

If GPB Capital Holdings was, in fact, running a Ponzi scam, then it is the investors that purchased these investments from brokers and brokerage firms that are the ones who sustained the real losses. Dozens of broker-dealers, both registered firms and unregistered firms, have reportedly sold GPB private placements to investors.

Our GPB Capital Holdings fraud lawyers at Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) have been working with investors to file their arbitration claims with FINRA to help them recoup their losses. Most recently, we filed an investor fraud claim against Arkadios Capital on behalf of one client.

Over the years, we have helped thousands of investors in recouping their fraud losses. Please contact SSEK Law Firm if you are a GPB private placement investor so that we can help you evaluate your legal options and determine whether you have grounds for an investor fraud claim.