Articles Tagged with GPB Capital Holdings

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.

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.

GPB Private Placements Were Sold Through Brokerage Firm’s AdvisorDirect® Service

An investor recently filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against broker-dealer TD Ameritrade over losses sustained in GPB investments. The private placements from GPB Capital Holdings were recommended by an investment advisor via the TD Ameritrade AdvisorDirect® Referral Program. 

GPB Capital Holdings LLC is accused of operating an over $1.7B Ponzi scam that defrauded over 17,000 investors. The claimant is seeking $500K in damages. 

Beleaguered Alternative Asset Firm Also Reaches $30M Settlement With Former Prime CEO 

New York-based GPB Capital Holdings, LLC has finalized its sale of its Prime Automotive Group to Group 1 Automotive. The purchase includes all of Prime Auto’s assets, including over two dozen car dealerships and three collision centers. 

The $880M sale of Prime Automotive Group was announced in September 2021. This comes months after a regulatory filing in May 2021 when GPB Capital stated that it doubted the former’s survival. In August 2021, the alternative asset firm spoke about selling dealerships to generate operational liquidity. 

Couple’s FINRA Arbitration Claim Seeks Up to $500K in Damages

A retired couple from Payson, Utah have filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Woodbury Financial Services over losses they sustained while investing in GPB Capital Holdings LLC, CIM REIT, and other privately traded entities. Now, they are seeking up to $500K in damages.

Our investment fraud lawyers are representing these investors in their FINRA arbitration claim against Woodbury. This is one of many securities cases we have filed against the broker-dealers that enriched themselves in the alleged $1.7B Ponzi scheme. The hearing will take place in Salt Lake City, Utah.

Alternative Asset Firm’s Former CEO Wants Money Despite Facing Criminal Fraud Charges 

David Gentile, the founder of GPB Capital Holdings LLC, is requesting that a district court grant him supervised mediation as he attempts to secure millions of dollars that he claims the alternative asset firm owes him as owner and general partner. 

Gentile, ex-managing partner Jeffrey Lash, and Ascendant Capital owner Jeffry Schneider are accused of operating an over $1.7B Ponzi scheme that defrauded more than 17,000 investors. The three men are also facing criminal charges.

GPB Sells Remaining Prime Automotive Group Dealerships to Group 1 Automotive

According to a regulatory filing submitted on September 13th, 2021, the private equity firm is selling all of its Prime Automotive car dealerships to Group 1 Automotive Inc. for $880M. The sale includes GPB Automotive Portfolio’s remaining 30 stores and three collision repair shops. 

GPB Auto is one of the alternative asset firm’s largest funds, and it has been selling car dealerships since at least 2018 when it owned 52 of them. It is one of the largest GPB funds and has reported huge losses. 

Federal Prosecutors Interviewed Alternative Asset Firm’s Former Auditor 

Six months after the Justice Department filed criminal charges against ex-GPB Capital Holdings executives for operating an over $1.8B Ponzi scam that defrauded more than 17,000 investors, prosecutors have submitted a court filing disclosing that federal officials have interviewed Alan Materazo of Margolin Winer & Evens, an ex-auditor and accountant for the private placement firm. 

Former GPB CEO and founder David Gentile, ex-managing partner Jeffrey Schneider, and Ascendant Capital owner Jeffrey Lash, who were charged with securities fraud, and conspiracy have also come under scrutiny for allegedly using investors’ money to pay for their own expenses. The interview of Materazo may have shed more light on whether this was, in fact, the case. 

Former Vancouver, Washington Financial Adviser Has 21 Disclosures On Record 

Jeffrey Raymond Dixson, an ex-Madison Avenue Securities investment advisor and stockbroker, is the subject of at least 10 Financial Industry Regulatory Authority (FINRA) arbitration claims in which the customers are seeking damages for their GPB private placement losses. 

The investments were issued by GPB Capital Holdings, which is now accused of running an over $1.8B Ponzi scam that defrauded more than 17,000 investors. Madison Avenue Securities is one of many broker-dealers that earned over $160M in commissions from selling GPB alternative investments. 

GPB Capital’s Auto Group has released more bad news about the financial condition of the company and the likelihood that it can continue as a substantial concern.  Specifically, the New York-based private equity firm, GPB Capital Holdings, LLC produced recent filings with the Securities and Exchange Commission which included additional financial information. 

The parent company is already facing multiple civil fraud charges for their Ponzi scheme and the recent ability to maintain business as usual does not come as a shock to our experienced attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm). 

SEC Filing Reveals Uncertain Future Ahead for GPB Auto Group

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