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Articles Tagged with GPB Ponzi Fraud

State Lawsuits Come After SEC Complaint and FBI Arrests

New York Attorney General Letitia James is suing GPB Capital Holdings along with five co-defendants for running a mass Ponzi scam.

The NY AG contends that the alternative asset firm and private equity fund manager, which is based in the state, defrauded investors throughout the US of over $700M. The complaint said that more than 1,400 of those victims were New Yorkers who invested over $150M.

Justice Department Files Parallel Criminal Charges Against GPB Capital’s David Gentile and Others

The Securities and Exchange Commission (SEC) has filed civil charges against GPB Capital Holdings CEO and owner David Gentile, ex-GPB managing partner Jeffrey Lash, Ascendant Capital owner Jeffry Schneider, and affiliated entities, including Ascendant Alternative Strategies, of defrauding 17,000 retail investors in a more than $1.7B in a Ponzi-like scam.

GPB Capital Holdings, an alternative asset firm that invests in auto dealerships and waste management, has been under investigation over Ponzi fraud allegations by the SEC, the Federal Bureau of Investigation (FBI), the Financial Industry Regulatory Authority (FINRA), and others for more than two years. Now, in a parallel case, the U.S. Attorney’s Office for the Eastern District of New York has filed criminal charges indicting Gentile, Lash, and Schneider. If convicted, they could each spend up to two decades in prison.

Jeffry Schneider, David Gentile, and Jeffrey Lash, GPB Capital Principals Indicted

Our firm has written extensively about GPB Capital and allegations that the “investments” were a massive Ponzi scheme. The U.S. District Attorney for the Eastern District of New York has indicted several of the principals of GPB Capital, and the indictment was unsealed today, February 4, 2021.

Specifically, the district attorney incited Jeffry Schneider, David Gentile, and Jeffrey Lash. These individuals were also all arrested today and will appear before local courts for initial appearances in Austin, Texas, Fort Myers, Florida, and Boston, Massachusetts. According to the indictment, Jeffry Schneider, David Gentile, and Jeffrey Lash misrepresented the GPB Capital investments to investors about “the source of funds used to pay monthly distribution payments to investors in several of the GPB Funds, including Holdings I, Automotive Portfolio and Holdings II, and (b) the revenue generated by Holdings I in 2014 and Automotive Portfolio in 2015.” These allegations are also non-exclusive, meaning the prosecuting attorneys are leaving open-ended the totality of misrepresentations that are at issue.

Michael Cohn Allegedly Stole Information About SEC Probe Into GPB Ponzi Scam Allegations

Nearly a year after he was charged with obstruction of justice, Michael Cohn, the former Chief Compliance Officer of GPB Capital Holdings, has pleaded guilty to the misdemeanor crime of theft of government property. 

The initial charges against him had been classified as federal crimes and included obstruction of justice, unauthorized disclosure of confidential information, and unauthorized computer access.

Alternative Asset Firm Gets Federal Aid While Its Investors Fight To Recover Their Losses

Even as the US Securities Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the FBI, state regulators and others have continued to investigate GPB Capital Holdings over allegations that it ran an up to $1.8B Ponzi scam, the alternative asset firm and its affiliated companies were able to secure between $3M and $7M in Paycheck Protection Program (PPP) loans following the outbreak of COVID-19. 

News of the loans was disclosed by the Small Business Administration.  GPB is one of over 660,000 small businesses that received loans under the PPP program, which is part of the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act.

State Securities Regulator Claims GPB Capital Defrauded 180 Local Investors

Massachusetts Secretary of the Commonwealth, William Galvin, has filed a civil fraud lawsuit against GPB Capital Holdings accusing it of defrauding 180 local investors who purchased more than $14M of private placements in five of the GPB funds. 

The alternative asset firm, which acquires waste management operations and auto dealerships, has been accused of operating a more than $1.5B Ponzi scam.

GPB Capital Holdings Faces Another Fraud Lawsuit

Already the subject of mass fraud accusations, including allegations of a $1.8B Ponzi scam, the alternative assets firm is once again the defendant of two new lawsuits. 

Adding to a growing list of GPB Capital lawsuits is another class action securities fraud case. The other, brought by Volkswagen of America, is accusing GPB of breaking its agreement when it fired Prime Automotive Group CEO, David Rosenberg, last year. 

Michael Sievert is Now an Arkadios Capital Broker

If you were an investor who suffered losses from GPB Capital Holdings investments that were sold to you by broker Michael Sievert, please contact Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) today. 

Sievert is currently an Arkadios Capital broker. Already, he is the subject of two customer disputes involving GPB private placements from his time when he was a Triad Advisors broker. 

Sagepoint Financial Customers Suffer Losses From GPB Funds

If you are an investor who suffered losses after a Sagepoint Financial broker sold you GPB private placements, our investor fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) would like to talk to you. GPB Capital Holdings is accused of running a $1.8B Ponzi scam. Sagepoint Financial is one of more than 60 broker-dealers whose registered representatives sold these investments to their customers.

Sagepoint Financial is part of Advisor Group, a huge network of independent wealth management firms. In August, the broker-dealer and another Advisor Group firm, Royal Alliance, were prominently named by the lead plaintiffs in the first class action securities case against GPB Capital. The firms’ brokers had sold them their investments in the GPB Automotive Portfolio and the GPB Holdings II funds. The plaintiffs, like so many other investors, had sustained substantive losses in the wake of the Ponzi fraud allegations, the suspension of investor redemption, the massive drop in value of all of the GPB Funds, and the other regulatory and civil troubles plaguing the alternative asset firm.

GPB Capital Fraud Victim To Have Case Heard By FINRA 

An investor who lost significant sums after she was sold GPB Capital private placements by an Arkadios Capital broker will get her case heard before a Financial Industry Regulatory Authority arbitration (FINRA) panel in April 2020. 

This will likely be the first broker fraud complaint involving GPB investments to go before the self-regulatory organization’s (SRO’s) arbitrators. 

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