GPB Investors’ Best Bet Remains To Pursue Damages From Broker-Dealers. Alternative Asset Company’s Executives Are Convicted of Securities Fraud
If you are an investor who sustained losses in GPB Capital Holdings’ more than $1.7B Ponzi-like scam, contact the Shepherd Smith Edwards and Kantas Ponzi Scam Lawyers (investorlawyers.com) today. For the past few years, we have been representing those whose financial advisors allegedly unsuitably recommended these private placements to them.
On August 1, 2024, a New York federal jury convicted former GPB Capital CEO David Gentile and GPB placement agent Ascendant Capital owner Jeffry Schneider of securities fraud, wire fraud, and conspiracy to commit both. The US Justice Department noted that the jury determined that the defendants lied about the health of the GPB funds and the source of fund distribution payments while fraudulently using investors’ money to keep up the “appearance of successful portfolio companies.” Prosecutors said that many thousands of investors were defrauded. Now, the two men face up to 20 years in prison.
More than 60 broker-dealers, including Advisors Group network (now Osaic), earned high commissions of around 11% for a purportedly collective $160M from selling GPB funds to investors. Meanwhile, GPB Capital Holdings earned high yearly management fees. GPB private placements were supposed to only be sold to accredited or rich investors that could withstand the high risk of loss and illiquidity. Yet, according to InvestmentNews, about 4,000 seniors ended up investing in GPB Funds.
GPB investors were promised distributions in a number of GPB limited partnerships, including auto dealers and garbage collecting businesses. Instead, of the $262M in distributions that they received, around $138M was made up of investors’ money. Not only that, but also many investors have not been able to recoup their money for years.
Contact Our Ponzi Scam Lawyers Today
For over 30 years, Shepherd Smith Edwards and Kantas Ponzi Scam Lawyers have been representing investors from all walks of life in suing for the damages they sustained because of unsuitable investment recommendations, best interest violations, misrepresentations and omissions, excessive trading, selling away, broker fraud, negligence, gross negligence, failure to supervise, breach of fiduciary duty, due diligence failure, and more by their financial advisors. We also work with those who were harmed in Ponzi scams and other types of investment fraud that investors could have been protected from were it not for the careless or reckless actions of financial advisors.
Contact Our Ponzi Scam Lawyers today to request your free, no obligation case assessment. We can help you assess the cause of your investment losses and whether a broker misconduct claim is warranted. That may be your best chance at financial recovery.
Call (800) 259-9010 today.