GPB Capital Investment Scam & How It Affected Investors

GPB Capital Investment is a company that was set up to manage investments in the stock market. They were promising huge returns and managed to attract many investors, but ended up being a scam. This article will discuss how this scam took place and affected investors on such a large scale.

What Is The GBP Capital Investment Scam?

The management team of GBP Capital Investment would take out funds from all of their clients’ accounts into one account, which they controlled at once. This way, they could make trades with much larger sums without splitting the money among different people’s accounts (which most other firms do).

These types of transactions are illegal because the money that is supposed to be for everyone’s use has been taken by those managing the investment firm to trade with it however they want, without telling any shareholders about how these decisions will affect them.

This company was so successful because they were giving their investors back way more than what they invested. It seemed like a win-win situation for all parties, but it turned out to be the biggest investment scam in history.

In November of 2017, the FBI investigated and found that GBP Capital Investment had been running this type of fraud since 2008 when the founder launched the firm. The money from these clients’ accounts amounted to $300 million, which was being used by those managing GPB Capital Investments illegally and some other companies related to them who are also guilty of this crime.

The authorities began shutting down any operation associated with GBP Financial Services Group Inc., including its subsidiaries, on December 15th, 2017.

What Did It Mean For Investors?

Investors who were trusting GPB Capital Investment with their money are now in a terrible position. They expected to have the funds returned into their accounts but found out that they would be unable to access them because of all the things being done by authorities and other companies related to GBP Financial Group Inc.

GBP Capital Investment firm is just one of the many firms that perform such scams in the US securities market. As an investor, make sure you invest your money carefully to avoid getting scammed. If needed, take the help of a skilled investment fraud attorney likeĀ Erez Law to sue the party at fault and recover your investments before it’s too late to do anything.

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