Massachusetts-centered Primary Automotive Team, owned by GPB Capital Holdings, reached a $30 million settlement with David Rosenberg, the company’s a person-time CEO.
Rosenberg lives in Marblehead but oversaw dealerships in the course of New England, including two on Cape Cod. He was fired after blowing the whistle on GPB’s financial mismanagement, and in the approach, uncovering what could be a $1.8 billion Ponzi scheme.
Rosenberg and his father, Ira, have deep roots and a storied heritage in the automotive marketplace in New England. Ira Rosenberg purchased his initially dealership in 1975, fashioned Ira Motor Group, bought it and then began Prime Motor Group with his son, David. The father-son duo grew the business to 20 dealerships in New England.
In 2017, the Rosenbergs marketed a majority desire in Key Motor Group to GPB Holdings, an alternate fairness agency, for $235 million. But Rosenberg managed an possibility to sell his remaining fascination, which he tried using to acquire in 2019.
The settlement very last 7 days cleared the way for GPB Capital Holdings to market Key Automotive Team, a person of the alternative investment firms’ companies. The Group includes 30 dealerships in the imid-Atlantic and New England region.
Capture up on this tale:Auto dealerships, an financial commitment agency and an alleged $1.8 billion Ponzi scheme
Rosenberg experienced filed a civil lawsuit in Norfolk Outstanding Court docket in July 2019 claiming GPB had engaged in securities fraud, and that he was fired in retaliation for blowing the whistle on the alleged money irregularities. He tried to sell his shares in the corporation but submitted suit alleging he wasn’t thoroughly compensated for the sale.
The $30 million settlement was great news for Rosenberg, however he couldn’t talk about the particulars of the settlement mainly because of a nondisclosure agreement.
“I’m pretty joyful about the settlement and I’m grateful that that is powering me now,” he mentioned in an job interview Monday.
Rosenberg is now increasing a further car small business: He has 6 dealerships less than the DSR Motor Group umbrella. They include Canobie Lake Toyota and Canobie Lake Honda in Salem, New Hampshire Tri-Town Subaru and Tri-City Dodge, Jeep, Ram in Somersworth, New Hampshire: White River Subaru in White River Junction, Vermont: and Jack Chevrolet in Saco, Maine.
“My father would say, ‘Congratulations. I’m satisfied for you. It is time to shift on,’” Rosenberg mentioned.
In April, Todd Copeland and Bryan Scarpellinni obtained the Copeland Chevrolet and Copeland Subaru dealerships — formerly Prime Chevrolet and Primary Subaru dealerships — on Ridgewood Avenue in Hyannis.
The dealerships had been owned by GPB Capital Holdings but when two top GPB executives were indicted for fraud previously this calendar year, the Key Automotive Team dealerships went up for sale.
Contact Denise Coffey at [email protected] Comply with her on Twitter: @DeniseCoffeyCCT.