GPB Capital Founder Claims Firm Owes Him Millions

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.

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is representing many of these investors in their FINRA arbitration claims against the brokerage firms that enriched themselves from selling GPB private placements to customers. If you are a GPB Capital investor seeking to recover your losses, call SSEK Law Firm at (800) 259-9010 today.

Over 17,000 GPB Capital Investors Suffer Huge Losses

In his letter to U.S. District Court Magistrate, Judge Vera Scanlon, David Gentile contends that he tried to get distributions connected to his tax obligations but has been hampered by the court-appointed monitor supervising GPB Capital.

Gentile claims that the company owes him $5.1M of his $6.1M tax liability from 2020. GPB paid him $1M for that in January 2021.

Gentile is arguing that not only is he, under certain operating agreements “entitled to distributions” but also, GPB Capital is obligated to pay for his legal fees in any actions related to the firm. The ex-CEO says that the New York-based private equity firm has not paid any money toward such fees.

He also claims that GPB stopped paying interest payments to him and his family, as well as defaulted on $5.5M in loans he made to the company.

Meanwhile, attorneys for Gardemal, GPB Capital, and the Securities and Exchange Commission (SEC) are arguing that his requests should be denied. They contend that not only does Gentile fail to qualify under mediation rules, but also the serious criminal fraud charges against him should also warrant rejection of his claims.

It was the US Justice Department that brought criminal charges against Gentile, Lash, and Schneider. All three men have pleaded not guilty to the charges.

Over 60 broker-dealers have made more than $160M in commissions and fees from selling GPB private placements to investors, including those for whom alternative investments were always unsuitable. Their losses have been staggering. Not only have redemptions to GPB investors been suspended for nearly three years, but all of the GPB Funds have plunged dramatically in value.

Experienced GPB Investment Fraud Law Firm

With all the regulatory and civil lawsuits against the firm, along with the fraud allegations, investors’ best chances of financial recovery is to pursue damages through FINRA arbitration. To speak with one of our GPB private placement lawyers, call SSEK Law Firm at (800) 259-9010 or contact us today.