Erez Law is currently investigating former Triad Advisors LLC broker Michael (Mike) Sievert (CRD# 2127441) regarding GPB Capital Holdings losses. Sievert has been registered with Arkadios Capital in Jacksonville, Florida since February 2018. Previously, Sievert was registered with Triad Advisors LLC in Jacksonville, Florida from 2012 to 2018.
GPB Capital Holdings is a New York-based investment firm that offers exempt, private-placement securities. These investments inherently have a high degree of risk due to their nature as unregistered securities offerings (and without regulatory oversight). The investment firm raised $1.8 billion from investors through private placements that invested in automotive dealerships, the waste management industry, and middle market lending. These investments were high risk and high commission (nearly 8%) private placements.
In November 2019, GPB Capital Holdings wrote a letter to investors that it is not going to meet its deadline of December 31, 2019 to supply investors with audited financial reports of two of its funds. Investors have been waiting since at least April 2018 to receive these reports from GPB Capital Holdings.
In June 2019, GPB Capital Holdings reported losses in the value of two of its investment funds: GPB Holdings II and GPB Automotive Portfolio. GPB Holdings II saw a decline in value of 25.4% and GPB Automotive Portfolio have decreased by 39%. GPB Holdings II and GPB Automotive Portfolio make up the majority of GPB Capital Holdings’ portfolio, raising $1.27 billion from investors.
GPB Capital Holdings manages the following nine private placements:
- GPB Automotive Portfolio, LP
- GPB Cold Storage LP
- GPB Holdings, LP
- GPB Holdings II, LP
- GPB Holdings III, LP
- GPB Holdings Qualified, LP
- GPB NYC Development, LP
- GPB Waste Management Fund, LP
GPB Capital Holdings other funds also reported declines in estimated value of 25% to 73%.
GPB Capital Holdings was launched in 2013 with a focus on buying auto dealerships. According to the SEC, GPB Automotive Portfolio raised $622.1 million from wealthy investors since 2013, and the minimum investment in GPB Automotive Portfolio was $100,000. GPB Holdings II raised $645.8 million since 2015. GPB Holdings II and GPB Automotive Portfolio together have paid brokers $100.1 million in commissions at a rate of 7.9%.
It is alleged that brokerage firms that sold GPB Capital Holdings and their brokers who recommended GPB Capital Holdings to their clients may not have conducted appropriate due diligence on the funds.
Sievert has been the subject of two customer complaints in 2019, according to his CRD report:
November 2019. “Statement of Claim incorrectly asserts that Representative sold GPB Automotive and GPB Holdings to Claimants during his association with Triad. Those sales were made by a different former Representative and his CRD updated accordingly. However, because Sievert is mentioned in the Statement of Claim and a GPB investment made at Arkadios is referenced in a footnote to the Statement of Claim, this disclosure is deemed necessary.” The customer is seeking $500,000 in damages and the case is currently pending.
July 2019. “In 2014, Claimants elected to invest in GPB Holdings. After suspension of distributions, Claimants now assert, five years after the fact, the investment was unsuitable.” The customer is seeking $200,000 in damages and the case is currently pending.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Triad Advisors LLC may be liable for investment or other losses suffered by Sievert’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.