GPB lawsuit

Did GPB Capital Holdings Executives Improperly Use Investors’ Money To Fund Personal Spending?

Published on: August 10, 2021 | by Shepherd Smith Edwards & Kantas, LLP

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.

GPB Capital Fraud Case Against Arete Wealth Management Results In $515K Arbitration Award

Published on: February 8, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Claimants Had Alleged Negligence, Poor Supervision, and Other Charges

A Financial Industry Regulatory Authority (FINRA) arbitration panel has awarded one customer and his trust $515K in their GPB private placement fraud claim against Arete Wealth Management. The Chicago-based brokerage firm also has been ordered to pay all of the claimant’s legal fees. The award is more than twice what was sought by the claimants, who had requested $225K in damages.

This is just one of the thousands of broker-dealer negligence claims brought against the financial firms and their registered representatives that marketed and sold GPB investments to their customers. GPB Capital Holdings, which invests primarily in waste management and auto dealerships, has allegedly been running an over $1.5B Ponzi scam.

Ex- CEO’s Lawsuit Against GPB Capital Holdings’ Prime Automotive Group May Proceed

Published on: February 4, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Ex-Prime Automotive Group CEO Accused Alternative Asset Firm of Running Massive Ponzi Scam

A Massachusetts Superior Court judge says the majority of the lawsuit filed by former Prime Automotive Group CEO, David Rosenberg, can move forward. Rosenberg, in his complaint, claims that he was fired and retaliated against after he accused the parent company, GPB Capital Holdings, of financial misconduct.

The alternative asset firm is under investigation over allegations that it ran an over $1.5B Ponzi scam that defrauded thousands of investors. Its many GPB funds have dropped significantly in value and investor redemptions were suspended more than two years ago.