SEC Charges GPB Capital Holdings For Fraud

SEC Charges GPB Capital Holdings For Fraud
mohamed_hassan / Pixabay

The US Securities and Exchange Commission charged investment adviser GPB Capital Holdings and three executives this week with defrauding over 17,000 retail investors in a Ponzi-like scheme that raised over $1.7 billion.

Play Quizzes 4

Get The Full Series in PDF

Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

Q4 2020 hedge fund letters, conferences and more

SEC Claims GPB Capital Is A Ponzi Scheme

Thomas Gorman is a partner at the international law firm Dorsey Whitney, and is one of the country's pre-eminent experts on SEC enforcement and insider trading. Mr. Gorman is author of the popular SEC Actions Blog, served for seven years in key positions at the Securities & Exchange Commission including Senior Counsel in the Division of Enforcement. Of this he says,

[Exclusive] ExodusPoint Is In The Green YTD Led By Rates And EM/ Macro Strategies

Invest ESG Leon CoopermanThe ExodusPoint Partners International Fund returned 0.36% for May, bringing its year-to-date return to 3.31% in a year that's been particularly challenging for most hedge funds, pushing many into the red. Macroeconomic factors continued to weigh on the market, resulting in significant intra-month volatility for May, although risk assets generally ended the month flat. Macro Read More

"No matter how many times it has been said, it is never enough: Be careful where you invest your funds.  Knowing the person, looking at the returns, reviewing the PR is never enough. It takes work – a  long, hard review of the entire operation to be sure, and even then mistakes get made. GPB Capital, a New York fund, is just the latest example.  Many folks thought this was an established fund.  Many put their money in.  Now the Department of Justice and the Securities and Exchange Commission claim it is a Ponzi scheme. The company disagrees and is cooperating ,according to a press release, with the authorities. Perhaps. But the clear point is this fund apparently had some significant financial issues; the clear fact is many people may lose their money or have it tied up for years. The clear point is that with better due diligence many of those investors may have avoided these agonies. Be careful out there," Gorman says.

Updated on

Jacob Wolinsky is the founder of, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at) - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver
Previous article Losses From A 1% Short Position In GameStop
Next article PSTH: Want To Bet On Bill Ackman?

No posts to display