Massachusetts-based Prime Automotive Group, owned by GPB Capital Holdings, reached a $30 million settlement with David Rosenberg, the company’s one-time CEO.
Rosenberg lives in Marblehead but oversaw dealerships throughout New England, including two on Cape Cod. He was fired after blowing the whistle on GPB’s financial mismanagement, and in the process, uncovering what could be a $1.8 billion Ponzi scheme.
Rosenberg and his father, Ira, have deep roots and a storied history in the automotive industry in New England. Ira Rosenberg purchased his first dealership in 1975, formed Ira Motor Group, sold it and then began Prime Motor Group with his son, David. The father-son duo grew the company to 20 dealerships in New England.
In 2017, the Rosenbergs sold a majority interest in Prime Motor Group to GPB Holdings, an alternative equity firm, for $235 million. But Rosenberg maintained an option to sell his remaining interest, which he tried to collect in 2019.
The settlement last week cleared the way for GPB Capital Holdings to sell Prime Automotive Group, one of the alternative investment firms' companies. The Group includes 30 dealerships in the imid-Atlantic and New England region.
Catch up on this story:Car dealerships, an investment firm and an alleged $1.8 billion Ponzi scheme
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