The holding company that owns the majority of Prime Automotive Group's assets reaped more than $57 million from the sale of five Prime dealerships and related real estate this year, new public financial documents show.
But some previous dealership divestitures by GPB Automotive Portfolio limited partnership, the holding company, during the past few years have been money-losers.
GPB Capital Holdings, the partnership's general partner and majority owner of Prime Automotive, one of the largest dealership groups in the country, this month filed three years of overdue audited financial statements for GPB Automotive Portfolio with the U.S. Securities and Exchange Commission as part of a required registration statement.
The partnership includes thousands of investors who raised $682.9 million, the regulatory filing shows. GPB used money raised from the investors to buy dealerships. Investors were promised 8 percent annual returns, but distributions stopped in late 2018.
In February, a federal judge in New York ordered the appointment of an independent monitor to oversee GPB Capital, an alternative asset management firm, after the company and former CEO David Gentile were accused of securities and other fraud by the SEC in a civil case. Gentile and others also face criminal charges on allegations of defrauding investors through what regulators called "a Ponzi-like scheme."