GPB Capital Holdings Investment Losses with Concorde Investment Services, LLC Broker Robert Smith?
Posted on Monday, September 16th, 2019 at 7:57 pm
Erez Law is currently investigating Concorde Investment Services, LLC broker Robert Smith (CRD# 1412333) regarding GPB Capital Holdings investment losses. Smith has been registered with Concorde Investment Services, LLC in Lake Oswego, Oregon since 2011.
According to public records, Smith is president of Peregrine Private Capital Corporation, which is a full-service securities group based in Portland, Oregon that specializes in alternative investments. According to the website, Peregrine Private Capital Corporation simplifies the securities and investment process and shows you how to manage your funds through sound financial practices.
In July 2019, a former client of Smith filed a claim against Smith, alleging, “Client is alleging unsuitable sales and negligence, relating to private placement investments made in 2015-2017.” The customer is seeking $1.1 million in damages and the case is currently pending.
According to the broker’s comment on his CRD, “Client found the GPB auto portfolio particularly compelling due to his spouse’s long work history with the auto dealerships and her intimate knowledge of them.”
GPB Capital Holdings is a New York-based investment firm that offers exempt, private-placement securities that 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.
As of July 2019, GPB Capital Holdings is more than a year past its deadline to make public its audited financial statements for two of its largest funds. 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.
Smith has been the subject of three additional customer complaints between 2010 and 2019, two of which were closed without action, according to his CRD report:
April 2013. “Misrepresentation, unsuitable investment, breach of fiduciary duty in relation to investment made in 2008.” The customer sought $85,000 in damages and the case was settled for $27,000.
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, Concorde Investment Services, LLC may be liable for investment or other losses suffered by Smith’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.