DOJ Sends Letter to GPB Ponzi Scheme Victims

US Government Reaches Out to GPB Capital Investors Who Were Harmed 

On December 23, 2021, the US Department of Justice sent a letter to those who have been identified as victims or potential victims of GPB Capital Holdings, LLC‘s more than $1.8B Ponzi scheme. 

The notice comes in the wake of the federal government’s criminal case against GPB founder and owner David Gentile, ex-GPB managing partner Jeffrey Lash, and Ascendant Capital CEO Jeffry Schneider. These individuals were are all charged with securities fraud, wire fraud, and conspiracy related to the alleged Ponzi scheme.

It is believed the Ponzi scheme defrauded over 17,000 investors. All three men are facing parallel civil Securities and Exchange Commission (SEC) charges, among other complaints, including numerous investor fraud lawsuits. 

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is representing a number of the GPB investors who received this letter from the Justice Department in FINRA arbitration. If you would like to explore your legal options related to your GPB private placement losses, contact SSEK Law Firm at (800) 259-9010 today. 

GPB Capital Investors are Guaranteed Certain Rights & Protections 

The US government’s letter noted that Gentile, Lash, and Schneider are accused of defrauding investors by misrepresenting:

• The source of money that was issued to the latter in monthly distribution payments
• The amount of revenue made by GPB Holdings, LP, and GPB Automotive Portfolio, LP, which are two of the GPB Funds

The DOJ said that between August 2015 and December 2018, the defendants allegedly engaged in misrepresentations and omissions about the distributions that they claimed came from cash flow made by the portfolio companies. 

The federal government claims a significant amount of those funds came out of investors’ own money. Because of this, their capital was decreasing every month without their knowledge. 

Now, the Justice Department is notifying recipients of the letter that under the Victims’ Rights and Restitution Act  (VRRA), victims of all crimes under investigation by the federal government have certain rights, including:

• Reasonable protection from the accused.
• “Reasonable and timely notice” of a public court or parole proceedings related to the crime charged.
• The right to be included in such proceedings unless the court deems otherwise.
• The right to be reasonably heard at public proceedings related to release, sentencing, plea, or parole.
• The right to speak with a lawyer for the Government.
• The right to total restitution under the law, etc

What Should GPB Investors Know About Pursuing Damages? 

While it is important and necessary for the DOJ to go after GPB’s executives and hold them responsible,  this is a criminal case and not a civil proceeding. 

Even with the SEC case, the state lawsuits against GPB Capital Holdings, and the various civil securities cases brought by investors against the alternative asset firm and its executives, you should know that having your own legal team protecting your rights and filing a claim on your behalf is the best way to pursue and recover damages. 

SSEK Law Firm represents GPB Capital investors in Financial Industry Regulatory Authority (FINRA) arbitration against the brokerage firms that sold them private placements in the GPB Funds. 

To request your free, no-obligation case consultation with one of our seasoned GPB investment fraud attorneys, call SSEK Law Firm at (800) 259-9010 today.