Former GPB Capital Holdings CEO David Gentile Sues The Alternative Asset Firm

Founder Faces Charges Over $1.8B Ponzi Scam and Wants GPB Capital to Pay His Legal Fees

Beleaguered private equity firm GPB Capital Holdings is back in the news. This time its founder and former CEO, David Gentile, is suing the company in Delaware Chancery Court. 

Gentile, who is facing criminal, civil fraud, and conspiracy charges related to the over $1.8B Ponzi scam that GPB is accused of perpetuating, wants his legal defense fees paid for and not out of his own pocket.

In his complaint, filed on December 20, 2021, Gentile argued that GPB Capital Holdings owes him $755,000 to date for services by a law firm that is defending him against the charges, which also include other civil claims. 

He accused the alternative asset firm of not honoring agreements made with GPB Capital and affiliated funds that “entitle” him to such payments in defense of the actions brought by the US Justice Department, the US Securities and Exchange Commission (SEC), various states’ enforcement actions, and the civil cases by investors.

Gentile contends that the reason he was even named in these actions is because he was the “sole owner of GPB Capital Holdings” and a company officer. He claims that under the company’s operating agreements, he is entitled to payment of these legal fees. 

Over 17,000 Investors Lost Money in GPB Ponzi Scam That Enriched Executives and Brokers 

David Gentile founded GPB Capital Holdings in 2013. He was the alternative asset firm’s CEO until February 2021 when he and two other company executives, Jeffrey Lash and Jeffry Schneider, were indicted in a New York federal court.

All three were charged with operating a more than $1.8B Ponzi scam. Civil fraud charges by the SEC were also brought against the three men and GPB. An independent monitor appointed by a judge is now overseeing the company.

Meanwhile, over 17,000 investors have suffered serious investment losses even as the brokerage firms that sold them GPB Funds investments made over $130M from the sales. Already, many investors have turned to Financial Industry Regulatory Authority (FINRA) arbitration to pursue damages.

Examples of GPB Investor Claims Brought Just in the Latter Half of 2021 

Over the last two years, many investors have brought claims against the brokerage firms and financial advisors that sold them GPB Capital funds and investments. In recent months, we have seen the following investor claims:

• A $500K FINRA arbitration case against TD Ameritrade after an investment adviser recommended GPB private placements through the TD Ameritrade AdvisorDirect® Referral Program. 
• A Utah retiree filed a six-figure FINRA arbitration claim against Woodbury Financial Services over investment losses, including those involving GPB. Our GPB investment attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are representing this claimant in pursuing damages.
• Royal Alliance broker Matthew Crafa was named in a $5M GPB investor case brought in FINRA arbitration.

Skilled GPB Capital Arbitration Lawyers

SSEK Law Firm represents several investors in FINRA arbitration who are pursuing damages against the brokerage firms and their financial advisors that sold them GPB private placement. Call our securities law firm at (800) 259-9010 today to request your free, no-obligation case consultation.